Compensation scheme for private customers of financial services firms that have gone out of business. If possible, FCSC transfers UK policyholders to new insurers but otherwise compensates them for their unexpired premiums. Compensation also covers unpaid claims. Compulsory third party motor insurance and employers’ liability is compensated in full; in non-compulsory insurance (e.g. household or general) the first £2,000 is fully compensated with 90 per cent of the remainder. Under long term business, the first £2,000 is fully protected plus 90 per cent of the value of the policy in liquidation. The scheme is funded by an industry levy.