The Financial Services Authority (FSA) has issued guidance for policyholders of Independent Insurance.
The regulator advises policyholders to contact Independent and not the Policyholders' Protection Board (PPB).
Independent has set up a dedicated telephone line for policyholders' enquiries – 0161 741 1010.
The PPB will pay out for 90% of individual non-compulsory insurance policies and 100% of compulsory insurances (third-party motor and employers' liability) for claims brought before their policy renewal.
But for non-compulsory commercial policies, Independent customers could be left out of pocket.
Commercial clients will have to wait for findings by provisional liquidators to find out whether their claims will be met.
The FSA said Independent Insurance's commercial policyholders would have to address their claims to the group's liquidators, Pricewaterhouse-coopers, along with the insurer's other creditors.
The FSA added that for commercial customers of Independent, businesses would generally rank with other unsecured creditors of the insurer and will be paid in due course to the extent that funds are available.
Independent predominantly wrote liability business including public and employers' liability insurance and professional indemnity insurance, commercial property business and a small amount of personal lines cover, mainly through affinity, group or high net worth schemes.