Personal Guarantee Insurance (PGI COVER) RATAE PGI LIMITED
An Authorised Representative of Professional Insurance Agents Ltd FCA Authorised (License Number 305228) Owns the PGI Cover Brand Responsible for all marketing of PGI Cover Manages ongoing relationship with the client Operates the PGI Cover Help Desk Claims Management Who are Ratae PGI Ltd?
Insurance cover for guarantors of a limited company’s borrowings Available for borrowings from members of the British Bankers Association and the Asset Based Finance Association Insurance pays out when there is a shortfall to a debenture holder What is PGI Cover?
Key Features of PGI Cover Application is made on line see www.pgicover.co.uk www.pgicover.co.uk Once application is accepted cover is in place as soon as the premium is paid. Insurance is renewed annually Amount of cover increases from 35% in year to 90% in year 5 and onwards Obligation on insured to notify the help desk of “notifiable events” allowing early remedial action.
Help Desk – Addressing Business Issues PGI Cover places an obligation on the insured to notify the help desk of indicators of business issues. 7 Day Notifiable Events 28 Day Notifiable Events The insured is reminded by e mail every month of the requirement to notify Help Desk ascertains what the issue is and if action is needed it is referred to one of our panel of Corporate Recovery firms
Help Desk ADVICE INFOCOMFORTSTABILITY Unlimited Telephone Access Responsive Advice On-going Business Support Ancillary services Valuable Resource Turnaround & Insolvency Expertise 24 hour Experienced Professionals Audit Trail e-mail updates Full CRM Dependable Advice
7-Day Notifiable Event Repayment demand from a banking creditor Secured or unsecured Highor County Court Judgment Statutory Demand or Winding-up Petition is served on the Insured Any of the Insured’s property becomes the subject of distraint
28-Day Notifiable Event Any Corporation Tax, NI or VAT liability is not paid within 7days or in 35 days of due date A liability relating to Employment or Health & Safety that cannot be met from cash flow Redundancy Unable to pay debts when they fall due A Bad Debt likely to effect cash flow Adverse change in banking facilities An unexpected demand for any Tax or VAT
Example of Cover in Year 3 PG of £100,000Indemnity Year 3 with 60% Cover£60,000 Scenario 1)Amount Demand from Lender£35,000 Paid by PGI Cover£35,000 Scenario 2)Amount Demand from Lender£70,000 Paid by PGI Cover£60,000 Balance due from Guarantor£10,000
What Does it Cost? Rate is 3.0% of the amount of the guarantee plus £200 administration fee 6% Insurance Premium Tax is payable on the premium
Other Features of PGI Cover Underwriting by Elite Insurance Available for multiple guarantors Renewed annually Level of cover can be amended as borrowings or guarantee change Can be paid by company or guarantor
Benefits to Guarantor Peace of mind that personal assets are protected in the event of unforeseen business issues Access to professional advice Comfort where multiple guarantors are of unequal wealth Early action on issues to maintain business
Benefits to Lender Increased level of security Obligation on directors to take early action to resolve business issues Client retention Third party monitoring of customer Less resistance to the requirement to provide a personal guarantee