Purbeck Personal Guarantee Insurance wants more brokers to offer solicitor clients insurance to cover the increasing number of personal guarantees they need to give in order to secure professional indemnity insurance.

Ahead of the April 2022 renewal season, Purbeck said more insurers wanted personal guarantees from the partners and leaders of small LLPs and incorporated businesses when offering professional indemnity cover.

The personal guarantees provide insurers with a means of recovering the run-off premium if the business fails and the insurer is obligated to provide 6-year run-off cover.

The run-off premium is typically 300% of the latest annual professional indemnity premium. Personal guarantee insurance responds when the run-off premium cannot be met by available cash resources of the firm.

Todd Davison, managing director of Purbeck Personal Guarantee Insurance, said: “During the past year we have seen increasing interest from solicitors firms for personal guarantee insurance specifically for professional indemnity cover.

“Our professional risks PGI helps protect the personal assets of the directors of solicitors firms and offers brokers a powerful proposition with commission opportunities as they prepare for the April renewal season.”

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