Middletown, Conn., Nov. 2, 2011– Asterisk Financial, Inc., creators of Personal Guarantee Insurance™ (PGI), announced today it is licensed to do business in 38 states and the District of Columbia, with plans to be in business nationwide by early 2012. The company has been on an aggressive expansion track since it first rolled out PGI in five states in June 2010.
Recent states that have been added include California, Texas and New Jersey.
Personal Guarantee Insurance is the first-ever insurance product protecting small-to-medium-size business owners, their partners and investors against personal asset loss from personal guarantees.
In today’s restrictive lending environment, banks are requiring most of those seeking a business loan to sign a personal guarantee. With the stroke of a pen, a loan recipient exposes their personal assets, such as real estate and bank accounts, as additional sources of debt repayment. Banks can then pursue these assets as repayment by “calling in” the personal guarantee in the event of a business loan default. For the guarantor, the results can be catastrophic, exhausting their means to restart their business and in some cases losing their homes.
For the first time, loan guarantors – including business owners, commercial real estate investors and limited partners – can have a substantial portion of their net liability covered through PGI if the underlying business should fail.
“As we’ve gotten PGI approved in state after state during the past two years, we’ve found that loan guarantors across the country are seeing the value of our unique offering,” said Mark L. Ricciardelli, CEO of Asterisk Financial. “It gives them peace of mind knowing their personal assets are protected”
PGI, an admitted policy (i.e. regulated by the licensing state), is currently available from insurance agencies in 38 states, just 16 months after its introduction. Interested agencies should contact their wholesaler. More information is available at www.personalguarantee.com/producer.
About Asterisk Financial
For more information on Asterisk Financial and PGI, please visit http://www.personalguarantee.com/asterisk/article/12/what-is-personal-guarantee-insurance