Todd Davison, managing director of Purbeck Insurance Services, said: “The rise in company insolvencies underlines the pressure on UK business owners, many of whom have seen their operational costs rise even further due to the conflict in the Middle East.
“While month-on-month increases can fluctuate, the underlying reality is that more SMEs are operating on increasingly fine margins.
“What we’re seeing alongside this is a significant rise in business owners turning to personal guarantee-backed borrowing to keep their businesses moving forward.
“Our latest data shows a record surge in demand for Personal Guarantee Insurance, as more directors take on more personal risk to keep their businesses going.
“Behind every insolvency is a business owner or director who has had to make difficult decisions in an increasingly challenging environment.
“It’s no surprise, then, that more are looking to protect themselves.
“Personal Guarantee Insurance is rapidly moving from a ‘nice to have’ to a critical risk management tool, giving business owners the confidence to access finance without putting everything on the line.”
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