Frequently Asked Questions

Personal Guarantee Insurance (PGI) is specialty insurance designed to cap personal financial downside arising from the enforcement of a personal guarantee supporting a business loan. If the lender enforces your personal guarantee and you incur a covered personal payment obligation, PGI may reimburse a covered portion—subject to policy terms, conditions, and limits.

When you sign a personal guarantee, you're putting your personal wealth on the line. If your business can't repay the loan, the lender may pursue your personal assets, including home equity, savings, and other personal property. PGI is designed to transform this open-ended personal risk into a more predictable, manageable insurance cost—subject to policy terms.

PGI is designed for business owners who sign personal guarantees on business financing. This includes founders scaling their companies, established operators expanding operations, entrepreneurs acquiring businesses, and anyone who wants to separate business risk from personal wealth.

PGI is available in all 50 states and most of Canada. Check with your broker for local licensing.

PGI may cover personal guarantees on many types of business financing, including certain SBA-related loans (7(a), 504, microloans), term loans, lines of credit, equipment financing, commercial real estate loans, and acquisition financing—subject to underwriting and jurisdiction. PGI is not affiliated with or endorsed by the U.S. Small Business Administration.

Coverage limits and the covered portion are set by underwriting and vary by jurisdiction and deal profile. You'll receive a quote showing the covered portion, premium, and key terms before binding. Policyholders typically retain some exposure.

In some cases, existing guarantees may be eligible for coverage, subject to underwriting review of loan status, performance, and timing.

PGI is a contract between you and the insurer and does not change the lender's rights under the guarantee. Any disclosure decisions should be made with your legal and banking advisors.

PGI requires sufficient evidence that a personal guarantee exists, who it binds, and the obligation being guaranteed. A Commitment Letter, Term Sheet, or Loan Agreement is typically sufficient. Personal Guarantee Agreements and Security Agreements can work with some confirmation. Read our full document guide for details.

Yes. A Commitment Letter or Term Sheet is often sufficient for PGI underwriting. These documents typically disclose the loan amount, term, lender, borrower, and personal guarantee requirement. This lets you get a quote and bind coverage before signing.

A standalone Personal Guarantee Agreement can work, but may not include loan amount or facility details. We'll extract what we can and ask you to confirm the missing information. This typically takes 30 seconds.

Coverage limits and premium are set by underwriting and vary by jurisdiction and deal profile. You'll receive a quote before binding. When compared to undefined personal exposure, many policyholders find PGI provides meaningful value.

PGI premiums are typically paid annually for the duration of the loan. Some policies offer multi-year options or payment plans. The premium is a defined, budgetable cost that replaces undefined personal exposure.

Many business owners treat the PGI premium as a cost of capital, similar to interest payments. It can be included in your overall financing budget. Some businesses may be able to treat the premium as a business expense; tax treatment depends on your situation. Consult your tax advisor.

Many applications take about 10 minutes to complete. You'll need basic information about the loan, your business financials, and your personal credit profile.

PGI is designed for deal speed. Once approved, coverage may be eligible for digital binding where available. Policy issuance timing varies, and coverage applies only as stated in the policy.

You'll need: loan amount and terms, personal guarantee amount, business financials (revenue, profit, balance sheet), personal credit score, and basic business information. If you're covering an existing guarantee, you'll also need current loan status information.

A claim may be triggered when the business defaults, the lender makes a formal demand under the personal guarantee, and the policyholder reports the claim during an active policy period with premiums paid in full. PGI is a claims-made policy—claims must be reported while coverage is in force, subject to policy terms.

Contact PGI as soon as you receive a formal demand from the lender. You'll submit documentation of the default and the guarantee enforcement demand. Our claims team reviews the documentation, verifies the claim against policy terms, and processes payment accordingly.

We aim to pay promptly once a claim is verified and approved, subject to documentation and policy terms. Timing depends on complexity and documentation.