Todd Davison, managing director of Purbeck Insurance Services, said: “New figures from the Insolvency Service, published today, show that 11,223 individuals entered insolvency in England and Wales in May 2026 — 10 per cent higher than in May 2025 – the continuation of a trend that should concern anyone with personal financial exposure to a business.
“For SME directors, the personal dimension of business failure is often underestimated until it is too late.
“Personal guarantees are a routine feature of commercial lending — required by banks, asset finance providers, landlords and trade creditors as a condition of doing business. They feel like a formality at the point of signing.
“When a business fails, they become a direct personal liability. A director’s home, savings and assets can all be exposed.
“What the insolvency data tells us is that the number of individuals reaching that point is still rising.
“The economic pressures driving business stress — elevated costs, uncertain demand, geopolitical disruption — have not eased, and the personal consequences for directors who are carrying uninsured guarantee exposure are significant.
“Understanding and managing that risk before a business comes under pressure is far preferable to confronting it afterwards.”
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