Can I Claim If My Employer Has No Insurance or Has Closed?

Quick Summary

• Most employers in Great Britain must hold employers' liability insurance of at least £5 million under the Employers' Liability (Compulsory Insurance) Act 1969
• If your employer has gone into insolvency but had insurance, you may be able to claim directly against the insurer under the Third Parties (Rights against Insurers) Act 2010
• If you do not know who the insurer was, the Employers' Liability Tracing Office (ELTO) database can help your solicitor find out
• If the insurer itself has failed, the Financial Services Compensation Scheme (FSCS) protects compulsory employers' liability claims
• This guide covers England and Wales. Scotland and Northern Ireland have their own courts and some different rules

Why does employers' liability insurance matter to my claim?

An accident at work claim is brought against your employer, but in practice the compensation is normally paid by the employer's insurer. The law requires most employers to carry this cover precisely so that an injured worker is not left dependent on whether the business can afford to pay. That is why the insurer, not the company's bank balance, is usually the real target of your claim. You can read more in our guide to employers' liability insurance.

What must employers have?

Under the Employers' Liability (Compulsory Insurance) Act 1969, most employers must have insurance of at least £5 million for each occurrence, and must display or make available the certificate. The Health and Safety Executive explains the rules and the exceptions in its guide Employers' liability insurance: a brief guide. An employer without the required cover can be fined up to £2,500 for every day they are uninsured, according to HSE guidance.

What if my employer has gone bust or closed down?

Insolvency of the employer does not automatically end your claim.

• If the employer had insurance: the Third Parties (Rights against Insurers) Act 2010 allows an injured person to pursue the insurer directly in defined insolvency situations, so you do not have to rely on the failed company.
• If the company has been dissolved: a claim cannot normally be brought against a company that no longer exists. Your solicitor may be able to apply to the court to restore the company to the register so that the insurer can be reached. This is a specialist step and time limits still matter.

Do not assume it is too late. Closure of a business is one of the most common reasons people wrongly give up on valid claims.

What if I do not know who the insurer was?

Employers' liability insurers must take part in the Employers' Liability Tracing Office (ELTO), which keeps a database of employers' liability policies. Solicitors routinely use it to identify the insurer for a current or former employer. Your payslips, contract and the employer's name and address at the time are the starting point.

What if the insurer itself has failed?

The Financial Services Compensation Scheme protects claims under compulsory insurance, including employers' liability, if the insurer becomes unable to pay. Ask your solicitor to check whether the FSCS applies.

What if my employer never had insurance?

This is the hardest situation. Your claim can still be brought against the employer, but if there is no insurer, payment depends on whether the employer or business has assets. Directors and owners are not usually personally liable simply because a company was uninsured. A solicitor can look at what is realistic, and you should also check whether you can receive Industrial Injuries Disablement Benefit, which does not depend on employer fault or insurance. You can also report an uninsured employer to the HSE.

Frequently asked questions

Can I still claim if my employer went into liquidation?

Possibly. If the employer had employers' liability insurance, the 2010 Act may allow you to claim directly against the insurer. Time limits still apply, so take advice early.

How do I find my employer's insurer?

Your solicitor can search the ELTO database using your employer's details. Your employment contract, payslips and any certificate displayed at work help.

Do I have to sue my employer personally?

In most cases the claim is defended and paid by the insurer. Your employer has a legal duty to insure against exactly this.

Does the three-year time limit stop while my employer is insolvent?

No. The usual limit for personal injury claims is three years from the date of the accident or the date you knew the injury was caused by work. Read our guide to time limits.

What happens if my employer never had the required insurance?

That can make the route to compensation more difficult, but it does not mean you should assume there is no claim. A solicitor can investigate whether another party or insurer may be responsible on the facts.

Not sure who is liable for your accident?

A specialist solicitor can trace the insurer and explain your options, even where the employer has closed.

Free case assessment

Or call 01228 272395 to speak to Edward & Amaury Solicitors (SRA number: 800525). No upfront cost and nothing to pay if your claim does not succeed.