Introducing Personal Guarantee Insurance™


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Owners don’t run a business expecting it to fail. But sometimes, businesses do just that. Even those with a great idea, a strong team and a growing market can be brought down by events or market cycles out of their control.

For most small and medium-sized business owners and investors, signing a personal guarantee to secure a business loan is a fact of life. Those who sign – known as guarantors – experience the financial and emotional stress that comes with risking the loss of their house, savings and investment accounts and other personal assets should their business fail.

To give guarantors some well-earned peace of mind, Asterisk and AmTrust Financial Group created Personal Guarantee Insurance™. The insurance will cover a substantial portion of all guarantors’ net liability to a lender if the underlying business should be unable to repay its bank loan, subject to the specific terms and conditions of the policy.

Until now, business owners and other guarantors had to risk personal financial ruin. But with the introduction of Personal Guarantee Insurance™, they can preserve their assets and continue to pursue success.

How Personal Guarantee Insurance™ Works

Personal Guarantee Insurance™ protects the personal assets of small and medium-sized business owners and commercial real estate investors when they sign a personal guarantee for a commercial loan. If, after liquidating the business assets, the lender seeks personal assets to repay the balance of the loan, PGI will cover up to 70% of the insured’s net liability, subject to the coverage purchased and the terms of the policy.

By covering a substantial portion of the guarantor’s net liability, the policy provides the insured with a safety net without eliminating the motivation to overcome difficulties and restore the health of the business.

Personal Guarantee Insurance™ is an annual policy, with a premium based on the size of the loan and the risk characteristics of the underlying business. The insurance is available only after a commercial loan has been originated, renewed, or modified and only for a limited time after the loan closing.

Who Needs Personal Guarantee Insurance™

While the coverage help protect anyone with a commercial loan and a personal guarantee, Personal Guarantee Insurance™ can be quite useful for managing risk for:

• Established business owners with a limited time to rebuild
• Multiple partners guaranteeing a single bank loan
• Commercial real estate investors
• Non-owner guarantors or businesses with non-owner guarantors

For a quick demonstration of personal guarantees and how personal guarantee insurance can assist your small business clients, please view our 2 minute animated demo.

Program Guidelines

Through a partnership between the IIAC and Asterisk Financial, you have access to this innovative new coverage. The Personal Guarantee Insurance policy is sold exclusively by Asterisk Financial Inc. on behalf of affiliates of AmTrust Financial Services, Inc., a New York domiciled, multinational property and casualty insurer specializing in coverage for small- and mid-sized businesses.  AmTrust Financial Services, Inc. is publically traded on the NASDAQ under the symbol AFSI and is rated “A“ (Excellent) Financial Size IX by A.M. Best.

Not all businesses will qualify for coverage. Those that do must meet the eligibility criteria established by Asterisk. The criteria are based on the:

• Financial performance of the underlying business
• Size and structure of the loan
• Financial health of the guarantor(s)

Currently, PGI is available to residents of Connecticut and 22 other states.  Coverage is expanding rapidly, so please contact Asterisk regarding residents of other states.

Asterisk Financial, Inc.

Asterisk Financial, Inc. (Asterisk) developed the Personal Guarantee Insurance™ policy, creating a new category of insurance designed to offer relief from the emotional and financial hardship that can result from signing a personal guarantee.

Asterisk is run by a seasoned management team with knowledge and understanding of the challenges and rewards associated with operating a business.

To provide a more responsive and efficient experience for our customers, Asterisk handles all underwriting and customer support, and manages directly all claims activity.

Get More Information

For additional information on personal guarantees and Personal Guarantee Insurance, please visit Asterisk’s website at www.personalguarantee.com.  Asterisk will answer your questions, discuss how Personal Guarantee Insurance™ can help protect your client’s personal assets and assist you in providing a quote. For assistance, simply contact Angelo Tebano at 1-860-704-4728 (Monday – Friday, 9 am to 5 pm ET) or contact us via email at info@asteriskfinancial.com.