​Glacier Contingent Liability

Protect your personal estate and your business from outstanding debt.

Get peace of mind about the repayment of your business loan if you die or are disabled.


  • You have certainty that the outstanding amount on your business loan will be repaid in full if something happens to you
  • The purchase price and the way this price is determined is agreed
  • Creditors cannot claim the outstanding debt from your estate or from your business (which would have forced the business to sell assets and can lead to liquidation in extreme cases)
  • The business is protected from any adverse effect on its creditworthiness as a result of death or disability of the person who stands surety
  • The financial resources of the business are not put under any undue strain

How it works

  • Step 1: The bank gives the business a loan
  • Step 2: The owner stands surety for the loan
  • Step 3: The owner and the business agree that the business will repay the balance of the loan should the owner die or become disabled before the loan is fully repaid
  • Step 4: The business effects a life cover policy on the owner's life (which should ideally include life and disability cover)
  • Step 5: On the owner's death or disability the proceeds of the life cover policy are paid to the business
  • Step 6: The business repays the loan and the owner (or the estate) is released from surety obligations

Why it’s important to have the right insurance

An owner of a company often has to provide personal security for a loan taken out by the business, and will be personally liable for the debt if the business is unable to repay the loan.

The outstanding money can also be claimed from his/her estate, at the expense of heirs and dependants. The estate may in turn claim the outstanding amount from the business or remaining owners, and the business may be forced to sell its assets should the remaining owners fail to raise funds.

The right insurance protects the business from any adverse effects as a result of death or disability of the person who stands surety for the loan, and the owner's personal assets are released from any liability on death or disability.