This business is a specialist provider of environmental and archaeological land surveys for firms operating in the construction industry and working to support grass roots developments. The business approached Purbeck Insurance, after an introduction by their finance broker, for PGI cover on a historical personal guarantee signed in support of a £350,000 overdraft facility that the business has utilised over the last 10 years.
The company also received a £250,000 CBILS loan, capped at the point that further personal guarantees would have been required from the Director. The CBILS facility was drawn down to take advantage of market opportunities and to provide a working capital buffer.
The underwriters worked closely with insurers and the client to get a quotation issued quickly, which was promptly purchased by the Director to
ensure that if the business began utilising the overdraft facility the risk to their personal assets would be greatly mitigated.
Interesting facts about the case
PGI is available for new and existing personal guarantees signed in support of business finance facilities.
The introducer on the case earned £500.00 in commission for simply passing the client our contact information.
Rather than insure the full value of the facility and personal guarantee (i.e. £350,000) underwriters worked with the client to limit the level of
insured cover to £200,000 to reflect the likely utilisation level of the overdraft facility over the next 12 months.
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