A Daventry-based engineering firm has claimed it was denied insurance cover because of its exposure in the US.
Morrisflex, which sells a small proportion of its rotary cutting tools to the US, said its existing insurer, NIG, had refused to renew cover because of its US exposure, revealed a report.
Morrisflex managing director Terence Libby said the company had wanted to change insurer after a 70% increase in its premiums the year before, despite not making a claim on its policy.
Libby said three insurance brokers were either unable to provide quotes from alternative insurers, or were given what he called extortionate quotes for employers' liability cover.
Libby said Morrisflex eventually found cover through a Lloyd's syndicate on "reasonable terms".
NIG marketing director David Grant said Morrisflex had chosen to take its business elsewhere after refusing to adopt working practice improvements requested by the insurer.
According to the report, Grant said: "We had made a survey earlier in the year by a risk surveyor who had recommended various risk management improvements to the business and these had not been completed."
While Libby said Morrisflex had not made claims on its policy, he said the company had been hit by two claims from former female employees who alleged they had injured themselves while working for the firm.
One claim, handled by a no-win, no-fee firm, has yet to be resolved, while the second, brought over two years ago, fell apart when the claimant was advised she had no case. Libby said Morrisflex had called on its insurance policy to cover the cost of contesting the claim, said the report.
