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Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 71040
Experience:  Over 5 years in practice
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I have company and an insurance claim for theft of small tools

Customer Question

I have company and an insurance claim for theft of small tools is outstanding for three years I want sell my company but don't want to sell the claim with it what can I do ?
Submitted: 3 years ago.
Category: Law
Expert:  Jo C. replied 3 years ago.

Thank you for your question. My name is Jo and I will try to help with this.

Is the "Company" a limited company?

Was the claim made by the company itself or by you personally?

How much is the claim?

Will it be settled in your favour?

Why is it still outstanding after three years?
Customer: replied 3 years ago.

Hi Jo yes the company is Ltd and the claim was made by the company the claim is for around £30,000 hopefully made in the compaies favour still out standing because the loss adjusters looking for many excuses to not pay out, I just want to know if I can sell the company but how I can retain the claim ? in my favour or another companies favour ?

Expert:  Jo C. replied 3 years ago.
Sorry for the delay.

There is no problem in doing this. What you need to do is get the limited company which has the benefit of the claim to write to the insurer and make sure that the insurer acknowledges and agrees telling them that from now on you personally (or your new limited company) will be dealing with the administration of the claim and that the benefit of the policy has been assigned to them. Do make sure they agree and acknowledge to do that. There is no legal reason why they should not do. Make sure that you explain exactly who you are and that only you have any knowledge of the fact. Explain that you are selling the company and that you wish to retain the benefit of the claim.

Then, you need to make sure that in the agreement for sale the proceeds of the policy are specifically excluded from the sale both in the pre-sale negotiations and in the post sale negotiations.

If for any reason insurance company starts to be awkward and will only deal with the original limited company you need to put in the provision that in respect of the claim, the new buyer will deal with all enquiries relating to the insurance claim and will forward any proceeds to you immediately, payable to you (or your limited company) on receipt. If they don't do so, you can obviously sue them.

Can I clarify anything for you?