PGI Canada launches personal guarantee insurance for business loans

PGI Canada has launched PGicover, a personal guarantee insurance product for Canadian business owners entering into commercial loan agreements.

The product is distributed by PGI Canada, administered by UK-based Purbeck Insurance Services, and underwritten by Markel International .

PGicover is designed to protect business owners from a portion of the personal financial liability they assume when signing personal guarantees, which are commonly required for business loans. If a covered personal guarantee is enforced, the policy may reimburse a portion of the insured’s payment obligation, subject to policy terms and limits.

The platform also includes AI-assisted document review to help applicants assess their potential personal liability during the application process.

The launch builds on Purbeck and Markel’s partnership in the UK, where they have offered personal guarantee insurance since 2017. According to Purbeck, more than 5,000 company directors have purchased coverage for personal guarantees totaling over £700 million.

PGI Canada said policies are available online on a claims-made basis through its mobile application.