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Claiming injury compensation from companies who have ceased trading or are in administration

By Ian Morris | Updated June 22nd, 2023

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In most compensation claims following an accident at work, a solicitor knows who to address the claim to as the company will still be in business and operating at the same place. However, if a claim is delayed it can lead to problems. If you left a company after an accident at work and didn’t pursue your claim for months, the company could have moved premises or even ceased trading.

Whilst you can still pursue a claim against a company which has moved, it means that your solicitor will have to waste time tracking them down. This may seem easy, but it’s not always a simple process. For companies that have ceased trading or gone in to liquidation, it can be even harder, but there is still an opportunity to pursue your claim for personal injury compensation.

Claiming from companies in administration

If you were injured working for an employer that was already or now is in the process of an official administration at the hands of an appointed administrator, it is likely that a claim can still be made. Whilst the right to claim remains, the prospects of success are likely to be smaller than otherwise for reasons that I will explain.

If we consider claiming compensation for an injury after an accident at work from a company in administration, it will still be possible for your solicitor to liaise with the administrators who become the defacto 3rd party. The likely outcome of any claim being made against the employer will depend on whether the administrator can confirm that the employer had complied with their responsibilities to hold valid employee liability insurance and if so, what level of excess stands on the policy.

If insurance was in place before the company went in to administration and the costs of the insurance had been paid, the policy would remain effective and a claim could still stand. However, the excess cost would then become an issue. With employee liability insurance, it is common for excess amounts to range from £1000 right up to 5-figure sums. With this in mind, if an administrator confirms a high excess, it could mean that the amount of money the excess forms would be higher than the value of the claim that you may make. As the administrator will not be able to pay the excess for any claim to be made, the claimant can opt to sacrifice the excess from their claim value and then retain the balance.

This can work fine if the value of a claim substantially outweighs the excess amount. For example, if you had a claim that had a value of £10,000 in compensation, but the excess was only £1000, it would still be worth claiming as you would then stand to receive £9,000 before your legal costs were deducted, leaving you with £6,750 in settlement. Whilst this may seem unfair (and it is!) it is better than having nothing.

However, if your claim settlement was worth £1,000 and the excess was also £1,000 it would not be worth pursuing the claim, unless you really wanted to prove a point. It is also unlikely that a solicitor would continue to pursue the claim on a conditional fee agreement basis.

Claiming from companies who have ceased trading

If you make an injury claim against a company who have ceased trading, it may still be worth it. However, it is important to be honest and realise that it is not likely to be a simple process or a speedy one, and that finding a solicitor to pursue the claim on a conditional fee basis could prove very difficult.

Companies who no longer trade have no active staff, therefore requests for information will not be answered and therefore finding out who their insurers were and whether they had cover may be impossible. Most companies are limited companies and this means that if the company is closed, you cannot claim against the business owners or directors as they are not personally responsible for the losses or costs of a business.

What to do if you want to claim

If you believe that the company that you wish to pursue a claim for personal injury compensation against has gone in to administration or no longer trades you obviously won’t know where you stand until you get some specialist help. Why not contact us and let us do some investigations for you. We’ll be able to find a solicitor willing to look in to the claim and they can then evaluate the likely outcome should any claim be made. Remember, it costs you nothing to look in to claiming or making a claim for personal injury compensation. There is nothing to pay if the claim doesn’t succeed, so you have nothing to lose.

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Comments & Questions

Read on for questions and advice about claiming...

I had a bad accident at work in March 2022. This week the company is going into administration. Would I still be eligible to make a claim? I have proof that the job changed to stating that all people doing that job must wear certain ppi to avoid injury.

The company going in to administration does not prevent you from pursuing a claim for personal injury compensation against the business. The business should have had insurance in place at the time of your accident and that policy can be used to pursue your claim – our Solicitors can investigate this for you and assist on a No Win No Fee basis. The only negative that can happen as a result of a company going in to administration in terms of personal injury compensation and settlement of the same may be their ability to pay any excess on their policy. In some situations this may be waived and in others, a claimant may have to agree to pay the excess from their settlement in order to obtain at least something as a positive outcome.

If you would like us to investigate this matter for you and assist with a No Win No Fee claim, please call us on 01225430285 or request a call from us via our website. As your accident happened in March 2022, it is important to start the claims process as soon as possible – especially given the administration issue – in order to ensure that your claim has the best prospects of succeeding.

Following on from my previous query, the person who fell had been told twice if not more times, how and where to stand on the roof and where not to. Statements were taken at the time which confirmed this from other workers on the site. We have also been advised that the person who fell has asked other workers to lie, to support his claim in their statements which had been taken at the time of the incident.

Should any claim documentation arrive with you/Your Husband, you should reference these comments to the claimant Solicitor. If a claimant is shown to have acted fraudulently or if they are ‘wilfully dishonest’, the claimant faces criminal action and the very real prospect of having to pay their own legal costs and those of the defendant.

An accident happened at my husband work a couple of month ago, he is a self employed roofer who was completing works on behalf of a contractor. One of the lads who worked for my husband fell from the roof to the bottom of the property resulting in a broken rib & fractured arm. A claim has now been made against my husband’s company (which is not a limited company) however the company they were working for at the time was in his dads company name, not the company which the claim is made against.
Also the insurance that had been in place at the time did not include employers liability, we were not under the impression this was needed, therefore the insurance has been suspended although the insurers took liability for not asking adequate questions to ensure the cover was correct. My husbands company has now stopped trading and does not have the finances to support any claim. Can a claim still be made against my husband? Thank you

Where a business either did not have insurance or has since ceased trading, it is highly unlikely that any Solicitor would be willing to pursue the matter. In such cases, regardless of the outcome of the claim, the defendant is unlikely to have the financial capability to settle the claim or cover legal fees and a Solicitor would therefore have no guarantee of obtaining their fee, even if they were to win.

In the scenario you describe, we do not believe that anyone would pursue a claim against the individual for the above reasons. Further, it would appear that the claim is directed to the wrong company in any event.

Hi there last year I was crashed into by a motorbike from behind hes insurance took full liability for the accident and my personal injuries my case is now at the settlement stages and I’ve just been informed by my case handler that the third party insurance has gone into liquidation. Does this mean I won’t be paid out as they have already admitted full liability, or does it mean even though they have gone into liquidation that I will still get paid out from them for my personal injury claim?

If the insurers are in liquidation, you as a claimant will be listed as a creditor and your claim will be passed to the administrators or liquidators of the insurers.

Can l still claim compensation if can’t find company insurers, for asbestosis?

Our Solicitors will be able to run the required checks to identify the insurers of the businesses in question. As long as you know the names of the companies you worked for, our Solicitors should be able to assist further.

After a serious accident at work, I have learned that my company has no employer liability insurance cover. How can I claim against them or do I have to accept an offer of compensation with no further claims against the company?

The fact that your employers had not ensured that they upheld their obligation to have employer liability insurance should not in and of itself prevent you from pursuing a claim for personal injury compensation. There is a possibility to claim directly against the business itself, or the owners/Directors of the same – if the company has sufficient financial wherewithal to withstand such action.

Can I claim even if company changed hands?

Yes, if a business or site where you were injured has since been sold, you can still seek to pursue a claim against the liable party. As with all claims, the prospects of succeeding with a claim for personal injury compensation will be greatly improved if you have the right evidence available to support your claim. With this in mind, if the details of the incident in which you were injured were recorded in an accident book and medical attention was sought for any injuries sustained, you are in a good position to pursue your claim.

If a non limited company ceases trading, is it possible to make a claim against the former owner (retired builder, for instance)?

If the owner of said business is located and found to have sufficient financial wherewithall to accommodate a claim, a Solicitor will pursue action against them. In the situation you describe, it may also be possible to pursue a claim against the closed business – if insurance was in place when the business was trading and when it caused the issue that would form the basis of your claim.

I slipped and fell in a Debenhams store breaking my hip, liability was admitted and I have a court judgement but the company have not paid. They are in administration, enforcement seems expensive and cannot guarantee payment, is there anything else I can do?

As a successful claimant in a personal injury action against a company now in administration, you become a creditor and should register with the administrators dealing with the closure of the business.

We have took over a Ltd company 7 years ago we have just received a solicitors letter, the claimant is claiming for HAVS while working for the company from 1999-2002. Can they claim against us if they didn’t actually work for us and can’t comment on working conditions/insurance etc at the time?

Is the business that is in existence now, the same business that the person worked for in the period stated? Despite the owners/Directors changing, if the company is the same company, the claimant does have a right to take action against that business.

The company was not a Ltd company then but is now. But same name.

Is the company registration number the same? If you have insurers, it would be wise to hand this to them and allow their legal team to deal with this for you.

My husband had an accident in Spain. Thomas Cooke admitted liability and they paid £10,000 as an interim payment then went bust. The solicitors have tried claiming against their insurance but found out that Thomas Cooke were self insured and therefore the insurance company are not held liable.

We have been offered a sum of though of £77,500 but the solicitors have to take disbursements and have written off most of their costs so we get £35,000 this claim has been going on for three and a half years we are not sure whether to accept it thank you.

This is a really unfortunate situation. As the business self-insured, there is no longer any route to seek further redress other than from the administrators or insolvency practitioners dealing with the closure of the business. Whilst it is a kick in the teeth to see so much compensation lost because the business has folded, it would seem that your only sensible option is to accept the offer and bank whatever settlement you can get.

I am currently going through a compensation claim but the company I was working for is closing, will this affect my claim? I started my claim in Dec 2019 and they are only just closing.

As long as the employer had insurance cover in place (which is a legal requirement) at the time of your accident, that insurance should still be available to cover the costs of your claim. If the business is closing due to financial issues, it could be that you may have to face the cost of any excess on the insurance to be deducted from your claim – as the business is no longer there to cover that cost.

Your Solicitor should be able to advise you on this matter.

I had a car accident accident in December 2019, which the other driver admitted 100% liability for. I suffered minor injuries but pursued a claim using Ageas Law to deal with it for me. After undergoing a physical examination, a doctor confirmed my injuries and eventually an offer of compensation was made, which I accepted. I signed and returned all relevant paperwork to Ageas Law on 26th June 2020. Since then I heard nothing. After waiting nearly 4 months I contacted Ageas Law to find out what the hold up was, and was informed by them that the 3rd party insurance company had “gone into liquidation” and that the case had been passed on to a “senior manager”. What happens in this instance and how likely am I to get my compensation?

Your Solicitor will advise you on this matter. You may wish to ask the regulatory authorities to check this for you – both the insurance ombudsman and the Solicitors Regulatory Authority in order to ensure that everything being said to you is correct.

I am claiming a personal injury following a car accident where my car was hit from behind. I have an independent witness statement. A disposal hearing date has been set for January 2021 because the the defendant has not replied to my solicitors letters. The defendants insurers are in liquidation. My solicitors are making the claim against the defendant. If the defendant does not have the means to pay my claim what is the likely outcome at the Disposal hearing and who pays my compensation ?

As the insurers are in liquidation, it is very unlikely that they would have assets to settle any claim. If the driver is not personally able to settle any claim, it may not be possible to succeed and receive settlement. The matter could be taken on by the Motor Insurers Bureau (MIB) and they may be able to look at compensating you on behalf of the now liquidated insurer. You should discuss that with your Solicitor.

If a solicitor pursues a child personal injury claim against a reputable company and the claim is successful and the courts grant damages to the child, which are held in a court trust fund. What happens to the solicitors fees if that reputable company then goes into administration and they haven’t manage to succeed in claiming their fees from the companies insurance?

Once a settlement is held in trust, it cannot be accessed by any party other than the court or trustee at the appropriate time.

My Wife and I are claiming damages against Fleetway Travel for injuries on holiday due to Gas sewage leakage in bedroom. Charles Taylor Adjusting have taked over the claim but now Fleetway Travel have ceased trading. Can we still carry on with our claim?

The claim should continue. The insurance should remain in place even though the business has ceased trading.

Hi I had accident at work and just been told he has no liability insurance. But his web site states he has liability insurance up to 5 million pounds. Were do I stand?

Who has told you that he does not have insurance in place? You could still pursue the claim against the employer directly – against them personally – if they have the financial wherewithal to pay compensation.

I have had a claim going through with solicitors for over two and a half years. The company who admitted liability after I had a fall on holiday, Thomas Cooke, have ceased trading.
My solicitor said the claim was worth in excess of 250,000 nothing has happened since, what can we do? my husband is paralysed as a result of the accident.

This situation needs to be discussed with your Solicitor at the earliest opportunity. However, as the defendant has been placed in liquidation, your Solicitor may at this time not know whether or not the claim can proceed. Of course, the insurers acting for the liquidated company will remain in place but the liquidated company is no longer in place to pay any excess on the policy. Depending on the size of their excess, it could impact on the claim.

On a positive note, given the potential value of the claim, the Solicitor will not want to simply close the claim if there is any way at all that they can succeed as alongside your Husband’s settlement value, the Solicitors fees would be substantial too and the only way that they can be recovered would be by succeeding with the claim for your Husband.

Hello, I worked for a company that has gone into administration. I had a head injury during the last years that the factory was open. I was sent to hospital and had 8 stitches on my forehead. I was hit with block of wood thrown at me accidentally by my colleague. Can I still claim now I have been made redundant?

Being made redundant, or having left a company does not prevent you from making a claim.

As long as you pursue your claim within 3 years of the date of the accident and the injuries were reported and recorded at the time, you can pursue your claim.

I injured my rotator cuff by falling at work. The company I work for is about to change its name but the owners will still be the same. Can I still make a claim?

Yes, it would appear that you would still be able to pursue your claim. As long as your injury was non-fault (caused by negligence or due to someone else’s mistake), you have sought medical attention and your injury happened within the past 3 years, you meet the criteria to pursue a claim for compensation.