Our vested interest in your success
As a Purbeck Personal Guarantee Insurance policy holder, we have a vested interest in your business’ success, but should you find yourself in a position where you experience financial difficulties or a downturn in business, we want you to know that we are here to offer our support.
Our support services should always come before a claim is made.
Support Services
Very often, when a company enters into financial distress, it is the first time the management team will have encountered such difficulties.
Leaving the problem to sort itself out is rarely the answer.
Our support team have many years’ experience in offering practical solutions, helping you to return to plain sailing again.
If you have lost major accounts, fallen victim to the insolvency of a customer, or simply find cash flow imploding due to poor sales, we can help.
For our support service to operate as effectively as possible, we require you to advise us at the earliest possible point in time of you knowing that your business is entering into financial difficulties. You will also be notified of this within your policy.
General claim conditions
Before you can make a claim with us, there are a number of conditions that we expect you to adhere to. These conditions are outlined below and will be in your policy. Please take the time to read and fully understand them before considering making a claim.
You will need to meet the following conditions throughout the Period of Insurance:
a) You must notify Us in writing of any request for payment by You of any Personal Guarantee made by the Lender. You must notify Us in writing of any circumstance of which You become aware that is likely to give rise to request for payment by You of any Personal Guarantee made by the Lender.
You must notify the Support Desk if any of the following events occur:
i) the Company receives a demand for repayment from a banking creditor, asset-based lending creditor, invoice financing creditor or private debenture holder, whether secured or unsecured;
ii) the Lender takes any steps to enforce the Personal Guarantee or if the Insured has reason to believe that the Lender is likely to take steps to enforce the Personal Guarantee;
iii) the Company defaults on any loan agreement with the Lender;
iv) a notice of intention to appoint an administrator is served on the Company; or
v) You intend to or are scheduled to meet with a licensed insolvency practitioner to discuss the Company’s affairs.
If You comply with the above, then any subsequent request for payment of the Personal Guarantee by the Lender will be regarded as having been made within the Period of Insurance.
b) Prior to entering into an Insolvency Procedure, You must ensure that the Company liaises with the Support Desk and obtains approval, in writing, in respect of the appointment of a Panel Member as the sole Office Holder and must maintain the appointment of this Office Holder throughout the Insolvency Procedure. In the event of an Insolvency Procedure, You must ensure that We are kept informed and updated in respect of the Insolvency Procedure.
c) You will need to ensure that the Company has promptly followed all advice provided by the Support Desk and/or any Panel Member.
d) You must take all reasonable and practicable measures so that the Company maintains comprehensive insurance cover in relation to any matter which could reasonably be expected to bring about a loss which could affect the Company’s solvency. The Company should also maintain comprehensive insurance cover relating to the loss or damage of all assets in respect of which the Personal Guarantee has been given. www.purbeckinsurance.co.uk 7 Version 202207(2)
e) You will need to make all reasonable efforts to ensure that the Company meets its liabilities to the Lender and to avoid the Lender from making a demand under the terms of the Personal Guarantee.
f) You must take all reasonable and practicable measures to recover any amounts paid by Us.
g) In the event You are made Personally Bankrupt this policy will be considered invalidated from the date at which You are made Personally Bankrupt.
h) You may be entitled to receive a refunded premium pro-rated for the remaining Period of Insurance.
i) We are entitled at any time to pay the Lender the Sum Insured (or as much as remains available) or any lesser amount for which any claim can be settled. If We do this, We will be under no further liability to You or the Lender in respect of the claim
How to make a claim
If you want to make a claim under this policy, there are a number of methods you can follow:
To contact us via telephone or email please use:
Tel: +44 (0)20 8004 7250
E-Mail: claims@purbeckinsurance.co.uk
To submit a claim, please start by ticking the attestation at the bottom of this page to confirm your acceptance and understanding of the information on this page. This will then generate a claim form for you to complete and submit to claims@purbeckinsurance.co.uk.
Important information
This is a ‘claims made’ policy which covers only claims or potential claims notified during the Period of Insurance.
In return for paying the premium, the Insurer agrees to pay you in accordance with the terms and conditions provided within this policy.
This policy is arranged, distributed and administered by Purbeck Insurance Services which is authorised and regulated by the Financial Conduct Authority in the UK.
What you must do
You must comply with the following conditions which are also described in your policy. If you fail to do so, the Insurer may not pay your claim, or any payment could be reduced.
Please note:
1) You must tell us as soon as possible of any changes to information You have provided in the proposal form which may affect this policy, giving details of what has happened.
2) You must provide Us with any information We may ask for.
3) You must not admit liability or offer to agree or to settle any claim without Our written permission.
4) You must take all reasonable care to limit any loss.
5) You must provide Us with reasonable evidence of the value of the Personal Guarantee called by the Lender.
6) You allow Us permission to contact Your Lender directly to confirm the amounts of the Personal Guarantee called by the Lender.
7) You must provide the Insurer with reasonable assistance to affect the assignment of any claim to the Insurer following settlement of that claim by the Insurer.
The claims process for the claimant
Complete the Purbeck Claims Form
Before completing the claim form you will have been in touch with Purbeck to advise on your position as and when you feel you are reaching difficulty with your business’ finances.
Once this has been done and you have been utilising our support services, you will then be advised to submit a claim form. This can be done through Purbeck’s dedicated claims page on our website: www.purbeckinsurance.co.uk/claims
Connect your accounts to Codat
Purbeck uses a service provided by Codat to connect to your accounts. Codat provides business data APIs for SMB lending and embedded accounting automation.
Their specialised infrastructure connects banks and fintechs to all the major accounting, banking, eCommerce, and payments platforms their customers use..
Purbeck will provide you with a link to connect your accounts to the software. You will be walked through the process on how to connect your accounting information. This then gives us access to some of the data we will need to review your claim.
Demand Mitigation Response Service
Once you have completed your claim form we will introduce you to a Demand Mitigation Response Service, chosen by Purbeck.
The Insurer will also pay Your costs resulting from the use, with Our prior agreement, of the Demand Mitigation Response Service in the event that the Company has entered into an Insolvency Procedure. The most the Insurer will pay in the Period of Insurance stated in the schedule for the use of the Demand Mitigation Response Service is £10,000.
The role of the Demand Mitigation Response Service is to communicate with your lender once demands are being made. They will look to try to negotiate a way to reduce fees, delay demands etc.
We will ask you to confirm that you are happy to receive this service, but it is within your best interests to accept the involvement of the Demand Mitigation Response Service as they will likely have a positive impact on your claim.
You must supply any evidence and supporting documents required to support your claim.
As part of the claim, Purbeck may require you to provide supporting documentation. You must endeavour to provide what is required to support your claim. Purbeck will never ask for documents that do not in any way relate to your claim.
Examples of some documents that may be required:
- Company Director Disqualification Act Questionnaire for directors (provided during the administration process)
- Copy of the original personal guarantees
- Copies of any demand letters made by the lender
- Communications with HMRC etc.
Do not disclose your Policy
You must not disclose your Policy to the lender. Any disclosure of the Policy will immediately void it on the basis that lenders are likely to make their demands more severe should they know that there’s one in place.
Threshold tests
Once the financial data has been uploaded, and we have received a copy of the Statement of Affairs, we will undertake a number of threshold tests during the financial analysis
These threshold tests focus on (1) coverage i.e. compliance with policy terms and conditions and (2) fair presentation of risk i.e. the representations made during the application process which are a fundamental basis of which we have offered insurance cover.
If we identify any issues in respect of these threshold tests, we will let you know and give you the opportunity to comment before we report to insurers.
During these tests you must provide Purbeck with any documentation that may be related to your claim as per your Policy requirements. Purbeck will never ask for any documents or information that isn’t in any way related to your claim.
Attestation
Before making a claim and completing the form, please confirm that you have fully read and understood the information above. If you have not met all of the conditions required to make a claim then please do not proceed.
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