Lemma Europe policyholders reassured by FSCS

UK customers of Lemma Europe Insurance Company, which has been declared in default, may receive assistance from the Financial Services Compensation Scheme (FSCS).

The FSCS says it is working closely with the firm’s provisional liquidator in Gibraltar, Grant Thornton, to protect up to 7,000 UK policyholders who may be affected by the collapse.

The insurer sold a variety of policies that could qualify for FSCS protection including: bloodstock; livestock; general public liability; UK employer’s liability; general property; householders; fine art and jewellery; legal expenses; UK solicitors’ professional indemnity.

The maximum level of compensation offered by the FSCS is 90% of a claim with no upper limit, although compulsory insurance (such as employer’s liability and motor third-party risks) will be paid in full.

FSCS chief executive, Mark Neale, comments: “We are prioritising people who may have urgent claims and will be working with the provisional liquidator to ensure that emergencies can be dealt with. People facing potential hardship will be our top priority.”