The Budget Group has launched a new commercial insurance division, which aims to have £5m premium income in the next five years.

Intermediary Budget previously focused on personal lines insurance, specialising in motor and household.

The new commercial division will mainly target small businesses including factories, pubs, restaurants, shops, hotels, care homes and the motor trade.

Budget group's chief executive, Peter Winslow said: “This is a very exciting development for us that will add real value to our offer in the market-place. We have ambitious plans for expansion and the launch of the commercial operation is an important part of that process.”

Budget Commercial's offices will be based in Stamford, near Peterborough, where Budget has its UK headquarters.