Business owners signing qualifying business loans backed by the Small Business Administration with personal guarantees are eligible for PGI coverage. Eligibility requirements include:

• Personal guarantee requirement from the lender

• Loan amount within our coverage limits

• Business located in states where coverage is available

• Subject to underwriting approval

PGI pays out after verified corporate bankruptcy, with documentation of loss and personal guarantee enforcement. The specific conditions include:

• Business default on the loan

• Completion of corporate bankruptcy proceedings

• Verification of business failure and asset liquidation

• Documentation of personal guarantee enforcement by the lender

• Submission of a complete claim with required documentation

Important: PGI does not prevent loan enforcement or provide immediate protection during default proceedings.

No — PGI provides partial coverage, typically 30-50% of the guaranteed amount. This coverage is designed to:

• Provide meaningful financial protection without replacing sound business practices

• Keep premiums affordable for small business owners

• Maintain appropriate risk-sharing between all parties

• Ensure sustainable insurance operations

The exact coverage percentage depends on factors such as business type, loan amount, and underwriting assessment.

Premiums start around 1.5–3% of the guaranteed amount annually. The exact cost depends on several factors:

• Business Risk Profile: Industry, financial strength, and operating history

• Loan Terms: Amount, duration, and structure of the personal guarantee

• Coverage Level: Percentage of guarantee amount covered

• Geographic Location: State-specific risk factors and regulations

Example Pricing

$500,000 personal guarantee × 2% annual premium = $10,000/year

*Actual pricing subject to underwriting and may vary based on risk factors

The PGI application process typically takes 5-10 business days from submission to approval, depending on:

• Completeness of application and supporting documents

• Complexity of the business and loan structure

• Underwriting review requirements

• Any additional information requests

We work closely with you and your lender to ensure a smooth process that doesn't delay your loan closing.

PGI is currently under development and is expected to be available in spring 2026. Initial states of availability are expected to include: (1) Virginia; (2) Georgia; (3) North Carolina; (4) South Carolina; (5) Florida; (6) Tennessee; (7) New Jersey; (8) Delaware; (9) Illinois; (10) Massachusetts; (11) Arizona; (12) Washington; (13) Arkansas; (14) Texas; (15) Colorado; (16) Ohio; (17)Michigan; (18)Pennsylvania; (19) Minnesota; (20) Indiana; (21) Utah; (22) Nevada; (23) Louisiana; (24) Alabama. 

Yes, PGI policies can typically be cancelled with proper notice, subject to policy terms. However, consider:

• Your personal guarantee remains in effect even if PGI is cancelled

• Coverage cannot be reinstated retroactively if business problems arise

• Premium refunds may be subject to minimum earned premium requirements

• Some lenders may require PGI as a condition of the loan

We recommend discussing any cancellation considerations with your insurance advisor and lender.