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New company structure - will claims history from old company?

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  • 28-04-2021 8:45pm
    #1
    Buddy Bubs
    Registered Users Posts: 3,513 ✭✭✭


    One for my insurance broker over next little while but I'll try here first. Company I work for will be bought out by management in 2022 or 2023, including myself. At the moment it's 1 company covering the whole of Ireland and has been operating for 30 odd years....few motor and public liability claims in the last few years, occupational hazard I suppose. Paying for it in increased premiums though, and it's a big big expense.

    In the buyout, the company will be split into either 4 or 5 new companies, with different owners and shareholders of each new part, roughly along geographical lines.

    At the moment we have 1 company Buddy Bubs Ltd covering all our manufacturing and installations but we will have

    Buddy Bubs Ltd (holding company)

    And new entities

    Buddy Bubs manufacturing Ltd
    Buddy Bubs Leinster Ltd
    Buddy Bubs Munster Ltd
    Buddy Bubs Connacht Ltd
    Buddy Bubs Ulster Ltd

    These new entities will own the vans and be carrying out manufacturing/installations where the claims have been. We've never had an EL claim thankfully.

    So, would it be possible for these new entities to have a clean slate when it comes to getting insurance or will the association with the company at the moment supper that plan?


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  • Options
    #2
    cplwhisper
    Registered Users Posts: 797 ✭✭✭cplwhisper


    Buddy Bubs wrote: »
    One for my insurance broker over next little while but I'll try here first. Company I work for will be bought out by management in 2022 or 2023, including myself. At the moment it's 1 company covering the whole of Ireland and has been operating for 30 odd years....few motor and public liability claims in the last few years, occupational hazard I suppose. Paying for it in increased premiums though, and it's a big big expense.

    In the buyout, the company will be split into either 4 or 5 new companies, with different owners and shareholders of each new part, roughly along geographical lines.

    At the moment we have 1 company Buddy Bubs Ltd covering all our manufacturing and installations but we will have

    Buddy Bubs Ltd (holding company)

    And new entities

    Buddy Bubs manufacturing Ltd
    Buddy Bubs Leinster Ltd
    Buddy Bubs Munster Ltd
    Buddy Bubs Connacht Ltd
    Buddy Bubs Ulster Ltd

    These new entities will own the vans and be carrying out manufacturing/installations where the claims have been. We've never had an EL claim thankfully.

    So, would it be possible for these new entities to have a clean slate when it comes to getting insurance or will the association with the company at the moment supper that plan?

    Chat to your current insurer. They may be able to offer underwriting rates for your existing staff & vehicles under the new company identities.

    Understandingly it won’t ignore any prior claims/loading a simple due to change in company names.

    Bring your business plan to them & they’ll work it out.
    All the best!!


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