Professional indemnity insurer Enterprise Insurance Company has been declared in default by the Financial Services Compensation Scheme.
Yesterday (28 July) the compensation scheme announced it is working closely with liquidator Frederick White of Grant Thornton, and the Financial Services Commission in Gibraltar where Enterprise is based, to establish the best way to help its policyholders.
In its announcement, the FSCS said if it establishes Enterprise cannot meet the cost of claims made against it, it will protect UK policyholders.
As such, it added policyholders must meet certain eligibility criteria.
As a standard, FSCS protects UK policyholders who are individuals or small businesses with a turnover of less than £1m, and it protects all policyholders for compulsory insurance only.
In a statement published on Enterprise’s website earlier this month, the firm’s management said it would like to inform policyholders it has requested the Gibraltar Financial Services Commission to suspend its authorisation to write new insurance business.
The firm had been under close supervision from the GFSC due to concerns about Enterprise’s financial position.