Markel-backed personal guarantee MGA hits 3,000 policyholder milestone

Markel-backed MGA Purbeck Insurance Services – which provides personal guarantee cover for SME directors, buy to let landlords and solicitors – has achieved “a significant milestone” in its growth journey by incepting 3,000 policies since the business launched seven and a half years ago.

Across these 3,000 policies, Purbeck Insurance Services has protected £400m of personal guarantee amounts agreed for business loans, buy to let mortgages and solicitors’ professional indemnity insurance.

According to the British Business Bank, a personal guarantee is “a legally binding agreement between a finance lender and a business owner or director, which states that the business owner or director will be personally liable for repaying the loan if the business defaults on loan repayments or becomes insolvent”.

Personal guarantee insurance, therefore, can repay the majority of a loan payment if a business becomes insolvent.

‘Substantial’ growth plans

Purbeck Insurance Services’ managing director, Todd Davison, told Insurance Times that his MGA was the only insurance firm in the UK market providing this specific type of cover.

He said: “We’ve built a business from scratch to support the small business community, launching a unique product to reduce the risk of personal guarantees.

“Reaching 3,000 policies is a significant milestone in our journey, but with approximately half of SMEs having a personal guarantee in their name, our ambitions for growth remain substantial.

“Fundamentally, we don’t see ourselves as [a] traditional insurance provider as we’re solving a very specific problem for small business that need finance but don’t want the personal guarantee risk attached.”

London-based Purbeck Insurance Services has approximately 15 staff.

It plans to grow its product suite into adjacent areas – such as performance bonds or trade credit – increase its headcount and bolster its technology capabilities in 2025, while maintaining its annual 25% new business growth target.

The firm also has longer-term ambitions to enter new jurisdictions, such as North America, but there is no “strict timetable” around this element, Davison added.

Mitigating claims

The MGA’s sweet spot lies in supporting firms that are around 10 years old or are startups, which have personal guarantees of about £150,000.

Purbeck Insurance Services’ cover also includes proactive risk management to avoid claims scenarios – this includes free mentoring for businesses in financial distress, or guidance if debt needs to be settled.

“We are really proud [of] coming from small origins and growing the business over the last seven and a half years to [these] levels,” Davison added.