Trade and Industry Secretary Patricia Hewitt has appointed insurance professional John McLaren-Stewart to the Small Business Council.
The Small Business Council is an advisory non-departmental public body, which represents the views of small businesses to the government.
One of nine new council members, McLaren-Stewart set up Bury St Edmunds-based Alliance Insurance Management in 2000.
The company now has offices in Bury St Edmunds, Peterborough, March and London.
McLaren-Stewart is the only council member to come from the insurance industry.
Established in May 2000, the Small Business Council is involved in a wide range of issues including employment legislation, skills provision, access to finance, better policy making and improved business support.
The Council reports directly to the Secretary of State and advises the chief executive of the Small Business Service. Members also meet the Minister for Small Business, Nigel Griffiths, regularly, said Alliance.