NFB fears long-term damage after collapse of Independent Insurance

The National Federation of Builders (NFB) has called for a public enquiry into the collapse of Independent Insurance.

According to Creditors of Independent Insurance Action Group (CIIG), a body set up by creditors concerned by the collapse, around £45m has been lost in premium payments, leaving contractors paying out claims from their own funds, as well as paying for new premiums.

"This could have serious long-term implications for many firms who will not have budgeted for such costs," said NFB chief executive Tony Maynard. "We will be taking measures to minimise the risk of this happening again."

The CIIG is furious with the Financial Services Authority (FSA) for not heeding earlier warnings from its French equivalent, Commission de Controle des Assurances, that Independent was in financial trouble at the start of the year.

After meetings with Brent North MP Barry Gardner, the CIIG will now lobby the government for some form of intervention. The group also intends to sue auditors, the FSA and the government over the issue.

"Gardner is pressing the government to carry out a full investigation into the collapse," said CIIG spokesman Rob Green.

Meanwhile the Construction Confederation will send a letter to the Treasury asking for Independent to be wound up as quickly as possible.