UK startup founders who have signed a personal guarantee on company debt, a facility, or a landlord / supplier contract often ask whether personal guarantee insurance (PGI) can protect them if the company cannot pay. This page owns that founder PGI job: when and why PGI comes up after you sign, what it typically covers (and does not), and how it differs from directors’ & officers’ (D&O), key-person, and fundraising certificate asks. It is not a second D&O page, not a second key-person page, and not a second startup pack map.

D&O depth lives on Directors and Officers Insurance UK. Key-person cover for founder dependency lives on Key Person Insurance for UK Startups. Investor / data-room certificate timing is Fundraising Insurance Certificates for UK Startups. Pack map: Startup Insurance UK. Use those pages for board liability, death/disability of a key founder, raise evidence, and the wider pack. Use this page when the question is “I signed a personal guarantee on startup debt / facilities — do I need personal guarantee insurance, and what does it actually do?”

Meshed is an FCA-regulated UK broker. Mesh'd Limited trading as Meshed is authorised and regulated by the Financial Conduct Authority under firm reference number 1033248. We place commercial covers for UK limited companies, partnerships, and sole traders, from a panel of insurers. Broker fee is a flat 10%, with no admin add-ons. We do not invent “from £X a month” PGI prices. Named customer quotes are off.

Why founders sign personal guarantees — and why insurance comes up

Early-stage UK startups often cannot borrow or lease on the company’s credit alone. Lenders, invoice financiers, landlords, and some suppliers ask founders to personally guarantee repayment if the company defaults. That turns company debt into a personal balance-sheet risk: salary, savings, and sometimes the family home can be in scope if the guarantee is called.

PGI (sometimes marketed as personal guarantee protection or similar product names) is a specialised cover that may help with a call on a qualifying guarantee — subject to the policy wording, exclusions, and underwriting. It is not the same as:

• D&O (claims against directors for alleged wrongful acts in running the company)

• Key-person (cash to the company if a named founder dies or becomes critically ill)

• Fundraising certificates (evidence of cover for a data room / investor process)

This page vs related hubs (do not confuse them)

If Startup Insurance UK or the D&O page mentions founder debt in passing, that is context. This page owns the personal guarantee insurance / founder PG job.

When PGI typically becomes relevant

1. Bank / growth facility or invoice finance — lender requires a personal guarantee from one or more directors

2. Office / lab lease — landlord asks for a PG alongside a rent deposit

3. Equipment finance or supplier credit — finance house or trade creditor wants a founder guarantee

4. After the guarantee is signed — founders ask how to protect personal assets if the company fails to pay

5. Before a larger raise or refinance — advisers ask whether PGs sit alongside D&O and key-person (different jobs; do not merge them)

Do not assume every PG can be insured, or that every product labelled “PGI” matches your guarantee wording. Placement depends on the guarantee text, lender, amount, and your financial position.

What “good” looks like for a founder PG discussion

1. A copy of the signed personal guarantee (or draft) — amount, parties, and trigger events

2. Clarity on which debts / facilities are guaranteed (and which are not)

3. Current company financials and any arrears / covenant issues the underwriter will ask about

4. A clear split from D&O: board claims vs call on a guarantee

5. A clear split from key-person: company cash on death/illness vs your personal exposure on debt

6. Honest expectations: PGI is specialised; some guarantees and situations will not place

Founders, sole traders, and early Ltds

Pre-seed founders and early Ltd directors sign PGs every year. Sole traders may face different personal-liability shapes (the business and the person are closer). If you are a founder, sole trader, or small partnership with a personal guarantee on the table, speak to us with the guarantee wording — we will say what we can place and what we cannot.

What to send a broker before you chase a quote

1. The personal guarantee (or draft) — full wording

2. Facility / lease / finance agreement summary (amount, term, lender)

3. Companies House name and structure (Ltd / partnership / sole trader)

4. Whether other directors co-guaranteed

5. Any existing D&O, key-person, or life cover already in place (for context, not as substitutes)

6. Prior claims, defaults, or CCJs relevant to underwriting

7. Timeline (lease signing date, facility drawdown, refinance)

Clean files move faster. “I signed a PG” without the wording slows placement when the lender is already chasing.

How Meshed helps

We advise UK startup founders on how personal guarantee insurance sits relative to D&O, key-person, and fundraising certificate asks, and we place cover from a panel where the risk fits. Mesh'd Limited trading as Meshed is authorised and regulated by the Financial Conduct Authority under firm reference number 1033248. Broker fee is a flat 10%, with no admin add-ons. We do not invent monthly “from £” PGI prices. Named customer quotes are off.

What to send: guarantee wording, facility / lease summary, structure, co-guarantors, existing covers, timeline.

D&O: Directors and Officers Insurance UK. Key-person: Key Person Insurance for UK Startups. Fundraising certificates: Fundraising Insurance Certificates for UK Startups. Pack map: Startup Insurance UK. Then speak to us with the guarantee and the facility dates.

Mesh'd Limited t/a Meshed / Meshed Cover · FCA FRN 1033248 · flat 10% broker fee · Ltd, partnerships, and sole traders · no fake prices · Speak to us

FAQs

What is personal guarantee insurance for UK startup founders?

It is specialised cover that may help if a lender or other party calls a personal guarantee you signed for company debt or facilities — subject to wording and underwriting. It is not D&O and not key-person.

Does D&O cover my personal guarantee?

Usually no. Directors and Officers Insurance UK addresses claims against directors for alleged wrongful acts. A call on a personal guarantee is a different exposure. This page owns the PGI / PG job.

Is this the same as key-person insurance?

No. Key Person Insurance for UK Startups is about company cash if a named founder dies or becomes critically ill. This page owns founder personal guarantee insurance.

Do I need PGI before every fundraising certificate?

Not automatically. Fundraising / data-room evidence is a separate job: Fundraising Insurance Certificates for UK Startups. Tell the broker if you have both a PG and a raise process running.

Are sole traders and founders in scope?

Yes. We place for Ltd, partnerships, and sole traders — speak to us about placement for your structure and guarantee.

Will you quote a “from £X a month” PGI price?

No. Premium depends on the guarantee, amounts, and underwriting. We place from a panel at a flat 10% broker fee and will not invent a marketing price. Named customer quotes are off.

Are you an insurer?

No. Meshed is a broker. Mesh'd Limited trading as Meshed is authorised and regulated by the Financial Conduct Authority under firm reference number 1033248.