An insurance company belonging to Saxon Insurance boss Brian Wright is being sued over allegations that it received £15,000 in excess fees for net-rated buildings cover.

The action is being brought by student lettings company Kexgill in Hull.

It purchased Guardian-provided buildings cover from intermediary Hill Arch, which is now in run-off and, was part of the Brian Wright group.

Kexgill managing director Michael Lee said that last year the intermediary charged him £15,000 for buildings cover on 180 properties.

However, he was surprised to receive a net renewal notice from Axa, (formerly Guardian) for £10,000 this year. This followed the acquisition of Arch Hill's book of business by Oaktree Financial Services of Nottingham. Lee said he is now seeking to recover £15,000 worth of overpaid premiums and costs from Arch Hill.

Kexgill's lawyers served proceedings against Arch Hill and its managing director Brian Wright on July 2. It has until Monday to contest the action. Brian Wright said he believes there is no case to answer and will contest the allegation.