Create a borrower-side backstop
The policy is for the insured borrower. It does not replace collateral, underwriting, or loan requirements.
Personal Guarantee Insurance
What is Personal Guarantee Insurance?
Last reviewed: May 2026
Personal Guarantee Insurance, or PGI, is borrower-side insurance designed to help cover eligible personal losses if a personal guarantee is enforced. It does not remove the guarantee, prevent default, or change the lender's rights. Coverage is subject to underwriting, exclusions, limits, state availability, and policy terms.
Simple definition
A personal guarantee puts business debt on your personal balance sheet
When you sign a personal guarantee, you agree to stand behind certain business debt if the business cannot repay. If business recovery falls short, the remaining balance can become your personal obligation.
i. Business loan
The company borrows
The business takes on debt to acquire, operate, or grow.
ii. Personal guarantee
The borrower signs personally
The guarantor stands behind the loan if the business cannot repay.
iii. Recovery gap
The business is worked out first
Business assets and recovery value are used to reduce the debt.
iv. Covered PGI claim
The policy can pay covered loss
If a covered deficiency remains, the policy pays according to its terms.
PGI does not prevent default, remove the guarantee, or change the lender's rights.
What PGI may do
A narrow promise, on purpose
Cover the post-recovery gap
If the business cannot repay, business assets are used first. If a covered deficiency remains, the policy can pay before personal assets are pursued.
Clarify the downside before signing
The process helps borrowers understand what exposure exists, what may be covered, and what remains outside the policy.
Who it is for
Built for the borrower
PGI is designed for the borrower or guarantor. It is not SBA loan insurance, lender protection, or credit enhancement. The goal is to help the borrower manage eligible personal loss exposure if the guarantee is enforced.
What it does not do
PGI is not a workaround
Ink is designed to live alongside the loan, not inside it. PGI does not modify the guarantee, replace lender underwriting, change collateral requirements, or act as credit enhancement.
- It does not remove the guarantee
- It does not make the loan safer for the lender
- It does not change SBA or lender requirements
- It does not replace legal, tax, or financial advice
- It does not eliminate business risk
- It does not replace collateral
Want to see what your exposure could look like?
Run a quick estimate before you sign. Five short steps, about three minutes.
Who may consider it
Who should consider PGI?
Personal Guarantee Insurance may be relevant if you are signing a personal guarantee and the downside could materially affect your personal assets.
- Significant home equity
- Taxable investments
- Rental property
- Meaningful cash savings
- A spouse or co-guarantor involved
- A large loan relative to personal net worth
- A family that wants a clearer downside plan
- Concern around personal bankruptcy
Where Ink is starting
Starting with business buyers
Ink is starting with business buyers using SBA 7(a) financing because personal guarantees are common, borrower need is clear, and loan data is more available than in many private lending markets.
Over time, the same category may extend to other forms of personal-guarantee-backed business debt.
When to talk / when to apply
Talk early. Apply when the loan is real.
You can talk to Ink anytime you are considering a business loan that requires a personal guarantee. The earlier you understand the exposure, the easier it is to plan.
You should apply once your lender has preapproved the loan or the loan structure is specific enough to underwrite.
Talk
Thinking about a PG loan
Talk to Ink early if a personal guarantee could materially affect your personal balance sheet.
Talk
Loan terms are taking shape
Once the loan amount, structure, and guarantee scope are clear, the exposure can be modeled more accurately.
Apply
Lender preapproval
Apply once your lender has preapproved the loan or provided terms specific enough for underwriting.
Apply
Before closing
Have a downside plan before you sign the personal guarantee.
Before you sign
Questions to answer before signing
Before signing a personal guarantee, borrowers should understand the downside clearly.
- What is the maximum personal guarantee exposure?
- What business assets or collateral support the loan?
- What happens if business recovery is not enough?
- Is my spouse signing or indirectly exposed?
- What personal assets could matter?
- Which state-law exemptions should my attorney review?
- Could any part of the exposure be insured?
FAQ
See all common questions →
Common questions about PGI
Yes. Personal Guarantee Insurance is a private insurance product designed for borrowers who sign personal guarantees. Ink is pre-launch, and coverage is not yet commercially available.
No. The guarantee remains in place. PGI does not remove the guarantee, change the loan documents, or alter the lender's rights.
The policy is for the insured borrower or guarantor. It is designed to help the borrower manage eligible personal loss exposure tied to a personal guarantee.
No. PGI should not be presented as credit enhancement. It does not make the loan safer for the lender, replace collateral, change underwriting, or satisfy SBA or lender requirements.
PGI can pay after the business can no longer repay, business assets have been used to reduce the debt, and a covered deficiency remains under the personal guarantee. Claim payment depends on underwriting, coverage, exclusions, limits, documentation, and policy terms.
The intended structure is for PGI to pay covered loss after business recovery and before covered personal assets are pursued. Exact timing depends on the policy, lender process, claim facts, and required documentation.
PGI is designed to help cover eligible personal losses tied to a personal guarantee. It does not provide legal asset protection, change state-law exemptions, or guarantee that any specific asset is protected. Home equity exposure should be reviewed with an attorney.
No. Availability depends on licensing, state approval, carrier approval, underwriting rules, and policy terms. Ink is preparing to launch state by state.
You can talk to Ink anytime you are considering a business loan that requires a personal guarantee. You should apply once your lender has preapproved the loan or the loan structure is specific enough to underwrite.
No. PGI is insurance, not legal, tax, or financial advice. Borrowers should review the guarantee, collateral, state-law exemptions, and asset-title questions with their own advisors.
No. Claim payment depends on the policy, exclusions, limits, documentation, claim facts, and whether the loss is covered.
Pricing depends on underwriting, loan structure, coverage amount, state availability, and policy terms. Ink is not quoting or offering coverage through the website while pre-launch.
Signing a personal guarantee?
Talk through the exposure before you sign.