Personal Guarantee Insurance
We spend most of our time with our business insurance customers discussing property and liability insurance, workers compensation, errors & omissions and commercial automobile insurance. Some specialty insurance products like credit insurance come up for those customers motivated by a bank loan requirement or other information that has come to their attention. Well, I’ve just read of a new product from AmTrust called Personal Guarantee Insurance.
See an outline below from AmTrust below:
For years, banks have required business owners to personally guarantee their commercial loans. This means if the business defaults on the loan, the bank can go after the owner’s personal assets to satisfy the guarantee. Even if the business is incorporated or is an LLC, signing a personal guarantee gives the bank permission to pursue personal assets to repay the loan.
AmTrust North America has partnered with Asterisk Financial, Inc. (AFI) to make available to you Personal Guarantee Insurance™(PGI). PGI insures the personal risk from commercial loans and will cover up to 70% of the net liability, depending upon the coverage purchased and the terms of the policy.
Who should be interested in PGI?
- Business owners with significant personal assets, one or more business partners, or a limited time horizon to rebuild should their business fail.
- Real estate investors who signed a personal guarantee.
- Someone who signed a personal guarantee for a family member (e.g., spouse) or friend to help them secure a loan.
If you are interested in Personal Guarantee Insurance, contact me today.