Purbeck Insurance Services says manufacturers are applying for personal guarantee insurance in far greater numbers as directors seek finance for expansion while protecting personal assets.
The company said applications for Personal Guarantee Insurance from manufacturing directors rose 135% in the first quarter of 2026 compared with Q1 2025. Working capital remained the leading reason for seeking finance, accounting for 47% of manufacturing PGI applications during the quarter, but growth investment applications doubled year on year.
Manufacturing also made up a larger share of overall PGI demand, rising to 9.1% of all applications from 6.4% a year earlier. Purbeck said the figures point to a growing use of personal guarantee cover within the sector as owners and directors continue to raise capital.
The average loan value linked to manufacturing PGI applications also increased. Purbeck said the average amount reached £188,413 in Q1 2026, compared with £164,964 in Q1 2025.
Personal guarantee insurance is typically used when directors are required to back borrowing with personal commitments. As loan values rise, the level of personal exposure attached to those facilities rises with them.
Todd Davison, MD of Purbeck Insurance Services, said: “The Q1 2026 data clearly shows that manufacturing directors are becoming more proactive in protecting their personal assets as they seek the capital required for growth. The doubling of application volumes and the shift toward investment-focused finance indicates a sector that is looking forward with ambition, but also with a prudent eye on risk management.”
Purbeck said the latest figures show a change both in volume and in purpose, with more manufacturers using PGI as part of growth funding activity rather than solely for short-term working capital support. The company described manufacturing as an increasingly active sector within its overall application mix during the first quarter.
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