The former owner of Shakes-peare Underwriting, Jayson Hollier, is attempting to buy-back the company from current owner the Bentley Group, following the announcement it had been put into administration last week.
Hollier sold the business to Andrew Booth, sole owner of Bentley, in 2002, and claims he is still owed money from the sale.
Shakespeare is understood to have lost around £40,000 due to its dealings with Arab German Insurance, the Jordan-based insurer which notoriously refused to honour claims last year.
Hollier told Insurance Times: "There is a lot of sentimental attachment between me and Shakespeare.
"Since the sale there has been a massive loss in volumes and I would like to make good a bad situation. It would also allow me to make back some of the money I'm still owed."
Administrator Tenon Recovery is understood to be considering offers of around £300,000 - less than a quarter of the value for which Shakespeare was sold in 2002.
Shakespeare has agency agreements with a number of underwriters to distribute motor cycle, private car, household, commercial vehicle and let property cover.
Tenon is likely to make a decision on the sale of the business within the next two weeks.
Brokers urged to check policy status
Biba is urging brokers to seek confirmation from Shakespeare Underwriting that any cover they have placed with the company is still in force and to confirm the status of any premiums paid.
Biba also said members who have placed business via the underwriting agency with non-UK authorised insurers need to establish the status of these policies and seek clarity about cover and claims administration.