When property insurance goes bust, here’s what to do

A property insurance company is about to go bust after it failed to pay claims after its insurance payout was delayed.

Massachusetts property insurer Cigna says it was told by the state that it would receive $1.2m in claims after a delay of more than a year due to a computer glitch.

The insurer says it’s paying the full amount and has been working to get it paid.

It is the latest setback for the insurance industry after the collapse of insurer AIG last year.