Even the most established business can fall into financial difficulty, and this was recently witnessed with the sudden and high-profile collapse of Britain’s oldest travel company, Thomas Cook. It highlighted the dramatic fallout that occurs when a widely-used business becomes insolvent. While much of the media coverage centred around job losses and helping the 150,000 customers stranded overseas, there are travellers who may have suffered an injury on holiday and are left wondering whether they can claim compensation.
Matters like this are not limited to the collapse of Thomas Cook, but are frequently experienced by those who have suffered an accident at work or in a public place, such as a supermarket or gym. In this article, we look at the process involved in claiming against a business that has ceased trading or entered into administration or liquidation.
Companies can stop trading for various reasons, but to make a successful claim, understanding the legal status of the company can be helpful. This can include:
Making a personal injury claim against a company that has gone into compulsory liquidation has its own set of unique challenges compared to regular personal injury claims. If the company has been liquidated, then legally, the entity no longer exists. At this point, there are two key issues to take into consideration:
You may have attempted to speak with the company, but it is unlikely you will receive a response using the usual channels of communication. The best course of action is to get in contact with the company’s administrator or liquidator (depending on the company’s specific legal position). This can be challenging as the company may have creditors and claims to deal with as a priority. Under these circumstances, you may wish to contact the company’s insurers instead.
If the company has been liquidated, you could get in touch with the company’s insurers. However, it may be difficult to find the name and details of the insurer you should contact. Generally, all personal injury claims against businesses involve insurers, so if your accident occurred when the company was still trading, or you have an existing personal injury claim against them, the claim will likely be covered.
With every personal injury claim we deal with, we strive to get you the compensation you deserve as quickly as possible, regardless of how complex your case may be. Our process can be broken down into five stages:
If a company has gone into liquidation, the company’s liabilities are substantially higher than their assets. Although public liability insurance is considered a necessity to cover claims, it is not a legal requirement for business owners. A further problem can arise when your injury occurred as a result of the negligence of a business after the company has ceased trading. Businesses typically will not have post-liquidation insurance in place, which means the insurer will not cover your accident or injury.
If a company does have the relevant insurance, the chance of a successful outcome will depend on the strength of your case. Your solicitor will contact the company’s insurer directly and pursue a claim against them on your behalf. They will gather and present evidence to support your claim, and most often, claims are settled efficiently outside of the courtroom.
You can still claim against a former employer even if they are no longer trading. This is common in cases of occupational disease where symptoms and diagnosis can occur many years later. The company should have had Employee Liability Insurance in place to cover employee illness, accident or injury. In these circumstances, you will bring your claim to their insurer. Here at Lawford Kidd, we have a proven track record of success in this area, particularly in mesothelioma cases.
For advice regarding claims against insolvent companies, call us free today on 0808 163 7219 or complete our online enquiry form, and we will call you back right away.
If we take your case, you will get 100% compensation with our no win no fee policy. We look forward to hearing from you and to helping you claim the maximum amount of money you deserve.