A firm faced with a 300 per cent increase in its insurance rates is calling on the government to take action over spiralling premiums.

DR International Climbing Walls was forced to accept the increased premium for nsurance policies on its employers, products and public liability so it could keep trading.

Don Robinson, founder and managing director of the firm which made the first ever climbing wall, said the company's existing insurer refused to renew their policy.

"Fixing cover was a nightmare. We spent more than 100 hours over four weeks and approached more than 60 insurance companies without success," he said.

"By the time we renewed, our previous policy had only hours to run and we had sent our workshop staff home just in case a reason to claim arose."

Mr Robinson, 76, said the £20,000 premium - up from £5,000 - could threaten the Pool-in-Wharfedale firm's future and is calling on the government to tackle the problem of spiralling premiums.

"The cost of our new policy means that we must win an additional £150,000 of business this year to afford the increased premium," he said.

"If we put our prices up, we risk losing business. Foreign businesses are competing in the UK without this obstacle. If our predicament is replicated among other enterprises and the government fails to act, there is no doubt that many will fail or be forced to operate illegally."

Leonie Edwards, a spokesman for the Association of British Insurers, said there were many factors leading to increased premiums. "Insurance rates are going up periodically. September 11 is one factor, with an increase in perceived risk," she said.

Other aspects include reduced returns for insurance companies from their investments, an increase in compensation culture and higher costs on re-insurance, where companies seek to limit their exposure to possible claims by spreading the risk with other firms. Mr Robinson is being backed by the Federation of Small Businesses (FSB) Yorkshire and Humber Policy Unit.

FSB Yorkshire and Humber policy chairman Tony Cherry said: "DR International Climbing Walls is fortunate in that it did eventually obtain cover but the business now faces a less secure future.

"It really is time that the Government takes notice and acts to end this crisis."

A spokesman for the Department of Work and Pensions said that a review of employers' insurance policies was being carried out, with the findings to be released later in the year.