Who collects monies owed when acquiring a broker?

Q: I am buying an insurance broker that may have outstanding debts and inevitably premiums owed. Whose responsibility is it to collect these monies?

A: Book debts are an issue, along with claims, that are often
overlooked when buying or selling a brokerage. Therefore, the simple fact
that you have recognised the existence of these issues is an excellent
start.


Both need to be negotiated in similar ways. The first decision should be
whether you or the vendor will assume responsibility for the collection of
any outstanding debts, premiums or costs of existing claims in place
before the business transfer date.


In the majority of cases, it will be