Personal Guarantee Insurance

When losing your business doesn’t mean losing your home

Losing your business because of cashflow problems is traumatic. Losing your home as a result of personal guarantees being called in by the bank or finance company can be even worse, wrecking lives and relationships.

What happens when a business takes a downturn, for instance when a major client fails to pay an invoice, or new enquiries dry up? Or when you are unable to continue paying the monthly fees on your invoice finance, trade finance or asset finance deal? 

Every year, business owners face up to these devastating events, having taken out a commercial mortgage or loans to perhaps buy equipment or employ more staff. 

New Service – Personal Guarantee Insurance

To help mitigate this situation, Morpheus Insurance Solutions have added Personal Guarantee Insurance to their suite of business insurances.

The policy enables Directors to claim a significant proportion of the amount called in by the lender under the personal guarantee following the insolvency of the business, significantly limiting the impact on a Directors’ personal estate.


  • A secured loan of £100,000 is covered by a premium of £2,500. If the business becomes insolvent and £50,000 is left on the loan. A maximum £10,000 is payable by the guarantor director. Considerably more palatable than having to pay back the full amount.

  • An unsecured loan of £200,000 is covered by a £5.000 premium. If the business becomes insolvent, the insurer provides the additional benefit of an unsecured loan specialist to negotiate the outstanding amount, with the director contributing 40% of that sum to the lender.



Subject to credit verification, premiums can be paid by the company in instalments, and are allowable against Corporation Tax (clients are advised to contact their accountants to make them aware of the payments).

For a personal quotation, contact Morpheus Insurance Solutions, tel: 01233 712812, or email