Firstcity Insurance Brokers is setting up a products guarantee financial loss and products recall insurance department.

It will run by newly-recruited Ron Piper, who has many years' experience working on products guarantee and recall insurance, initially with the Stenhouse group and latterly as manager of the Houlders' facility.

Kelvin Curran, director of FirstCity, said: “Areas such as food and drink face enormous challenges with regard to product contamination and we will provide an insurance safety net for these and other susceptible sectors.”

He added: “Ron's widespread knowledge of this specialised market, which is unique to London, will enable us to respond to its growing and changing needs.”