Skip to content

All News and Blogs

A rush to protect assets as insolvencies reach 18 month high

September 2021: Following news of an 18 month high in registered company insolvencies[i], we are urging the owners of small and medium sized businesses to ensure their personal assets, such as their home, bank account and savings, are protected if their business should become insolvent.

Business owners urged to protect personal assets as insolvencies reach 18 month high Purbeck Personal Guarantee Insurance

Are directors personally liable for company debts?

Nobody wants to think about debts, but the fact of the matter is that it’s always been a part of business (and likely always will be!). Sometimes, debt can become insurmountable for a limited company or a sole trader, but is a company director liable for its debts? 

Liability cover

Rise in Business Creation Sparks Finance Stacking Fears

  • -  70% of start-ups seek new finance in 2021
  • -  Savvy entrepreneurs protect £35m in loans through personal guarantee       insurance
  •  

July 2021: As ONS data shows an unprecedented rise in new company registrations in Q1 2021 versus Q1 2020[i] continuing a trend seen in 2020 - ‘the year of the start-up’[ii] - our latest survey has revealed that 70% of start-ups[iii] have secured or are planning to secure finance in 2021 to help support cashflow. Amongst these businesses, 37% of the owners or directors surveyed have already signed Personal Guarantees in 2020 to access finance, raising fears of loan stacking and multiple personal guarantees signed by one individual.

What happens when a company is dissolved?

Directors may choose to voluntarily dissolve a business for a range of reasons, such as the retirement of the owner, the end of the useful life of the company from a legal perspective, or simply because it proved to be an unsuccessful venture. It’s the simplest and most cost-effective way to close a private limited company – but it isn’t always as straightforward as many directors hope it would be.

Company Dissolved Personal Guarantee Insurance

£2.1bn Guarantee backed loans under CBILS in the last year | Purbeck

July 2021: The final COVID loans data released by the Government this week[i] failed to provide clarity on the total value of loans which required the business owner or director to sign a Personal Guarantee, putting their personal assets at risk if the business fails. Based on a Freedom of Information[ii] request made by our MD, it is estimated that 8% of the value of all the CBILS loans advanced required a personal guarantee. This equates to £2.1bn in loans taken over the past year.

£2.1bn Personal Guarantee backed loans under CBILS Purbeck Personal Guarantee Insurance

Contact Us for more information

For more information or to speak to one of our underwriters contact us today.