Asterisk Financial Launches Personal Guarantee
InsuranceTM, a New Insurance Product Protecting
Business Owners from Loan-Related Losses
Ground-breaking insurance from Asterisk covers a substantial portion of net personal liability in cases of
small business loan default and business liquidation
June 24, 2010 12:11 PM Eastern Daylight Time
MIDDLETOWN, Conn.--(EON: Enhanced Online News)--Asterisk Financial Inc. today announced the
introduction of Personal Guarantee Insurance™, a new insurance product that protects small-to-medium-size
(SMB) business owners, or anyone who guarantees a SMB loan, against major loan-related losses.
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 if the underlying business should fail. The concept of
Personal Guarantee Insurance is so innovative that Asterisk has applied for a patent for the concept.
Asterisk uses a direct selling approach and is initially licensed to offer Personal Guarantee Insurance™ in
Connecticut, Illinois, Indiana, Iowa and Wisconsin, with plans to expand to at least 10 other states in 2010 and
Today, most SMB owners, limited partners and commercial real estate investors are required to personally
guarantee a commercial loan transaction, exposing their personal assets when they take out a business loan. This puts
them at risk of losing their home, savings and other personal assets if the business should get into trouble and default
on the loan.
Personal Guarantee Insurance from Asterisk assures guarantors that they are protecting their personal assets when
they sign a guarantee for a commercial loan.
How Personal Guarantee Insurance Works
If, after liquidating the business assets, the lender seeks personal assets to repay the balance of the loan, Personal
Guarantee Insurance will cover a substantial portion of the insured’s net liability, subject to the terms of the policy.
“For years, t