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Reduced limits could reduce -

a) The ability of any firm to rely upon another firm's undertaking; and
b) The willingness of lenders to instruct small firms.

The availability of excess layer insurance answers neither of those points, because -

i) There is a real risk of excess layer insurers avoiding claims or policies;
ii) Claims made cover means that the policy in place at the time of reliance on an undertaking or instruction may not respond when a claim is made.

This represents a corresponding existential threat to the existence of small firms.