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Purbeck Personal Guarantee Insurance welcomes fresh support on energy bills for small businesses

Purbeck Personal Guarantee Insurance welcomes fresh support on energy bills for small businesses   September 2022: Purbeck Personal Guarantee Insurance, the U.K.’s first and only provider of personal guarantee insurance to the owners and directors of small businesses, has welcomed the Energy Bill Relief Scheme announced today, to cap the amount small firms can be […]

Purbeck Personal Guarantee Insurance welcomes fresh support on energy bills for small businesses  

September 2022: Purbeck Personal Guarantee Insurance, the U.K.’s first and only provider of personal guarantee insurance to the owners and directors of small businesses, has welcomed the Energy Bill Relief Scheme announced today, to cap the amount small firms can be charged for their energy bills[i].

Indicating the current stresses on small business finances, Purbeck’s data shows that the number of small businesses who have taken on a new loan with a personal guarantee attached has more than doubled compared to last year[ii] and a Freedom of Information Request found as at 27th June 2022, 193,377 of Bounce Back Loans are in some form of arrears.  This makes up 12.4% of the total number of BBLS advanced[iii].

Todd Davison, MD of Purbeck Insurance said: “We have seen the hunger for new finance jump over 125% year on year with working capital as the prime reason for new funding.  At the same time, the latest insolvency data shows a 67% increase in registered company solvencies year on year and 27% up on pre-pandemic levels[iv].  Behind many of these business failures is an individual or team who have not only seen their dream collapse but now have the burden of a business debt to repay if they have provided a personal guarantee for a loan. Mitigating that risk through insurance is bringing certainty to many business owners in a very uncertain economic environment and we would urge small businesses to consider measures such as this as they navigate another difficult trading period following the pandemic.”

Personal Guarantee Insurance mitigates the risk of signing a personal guarantee backed business loan.  This means if the business does fail, 80% of the loan will be settled by the insurance rather than the business owner’s home, savings and other personal assets being called on to settle the debt.

The level of cover is based on a fixed percentage of the personal guarantee the company director wishes to insure.  This is dependent on whether the corresponding finance facility is secured or unsecured.

Personal Guarantee Insurance also does a lot more than pay out following a claim.  Policyholders are offered access to free mentoring and support services if the business gets into financial distress, plus the huge benefit of expert guidance at the point the debt needs to be settled.

About Purbeck Insurance Services

Purbeck Insurance Services is a Personal Guarantee Insurance specialist supporting Small and Medium sized Enterprises (“SMEs”) and promoting business confidence

Insurance policies backed by Markel International Insurance Company Limited (“Markel”), an A-Rated insurer, as rated by A.M. Best (A), Fitch (A+) and S&P (A). Markel is a shareholder in Purbeck Insurance Services.

Purbeck Insurance Services is directly authorised and regulated by the Financial Conduct Authority

Insurance is underwritten by Purbeck Insurance Services, an authorised Managing General Agent (“MGA”) of Markel

Purbeck Personal Guarantee Insurance is annual insurance policy that provides Director(s) with insurance cover in the event their business lender calls in the Personal Guarantee (provided by the Director(s) as part of raising business finance)

Key features of Personal Guarantee Insurance:

  • Premiums are competitively priced and based on individual circumstances
  • Cover is available for Personal Guarantees signed to support a wide range of business finance facilities

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