Yes, you can usually still claim. Your right to compensation comes from your employer’s negligence, not from their insurance policy. If the business has no cover, the claim goes against the employer directly. If it has closed down, the insurer that covered it when you were injured can often be pursued instead. If that insurer has also collapsed, the Financial Services Compensation Scheme may step in. Some routes are more dependable than others, and the 3 year time limit keeps running while you work out which one applies to you.
This guide explains how each situation works, how to find out who was insured and what to do first. You don’t need the answers before you get advice. Working out who is liable and who can actually pay is a large part of what a solicitor does in these cases.
Does your employer have to have insurance?
Almost always, yes. Employers must hold Employers’ Liability insurance covering at least £5 million, bought from an authorised insurer. They can be fined £2,500 for every day they are not properly insured. The main exceptions are businesses that only employ close family members or people based outside England, Scotland and Wales.
Your employer should also display the certificate where staff can see it, for example on a noticeboard, an intranet or a website. They can be fined £1,000 if they don’t. If you’ve never seen one, ask for a copy in writing. A refusal or a vague answer tells you something, although it isn’t proof that no policy exists.
It works the other way too. A certificate on the wall doesn’t prove the policy was valid on the day you were hurt, so don’t treat it as the final word.
Can you claim if your employer has no insurance?
Yes. Your claim depends on showing your employer failed to keep you reasonably safe and that this caused your injury. If there is no insurance, the claim is brought against the employer itself. The practical question is whether they can pay, which is why the employer’s finances matter from the start.
Think of insurance as the way a claim is usually paid, not the reason it exists. A sole trader is personally responsible for the compensation. With a limited company, the company’s assets are what’s available, and directors are not usually personally liable for its debts.
Road accidents have the Motor Insurers’ Bureau, which compensates people hurt by uninsured drivers. There is no equivalent fund of last resort for uninsured employers. That gap is the main reason these claims can be harder than they should be.
Here is a simple example. Imagine you work as a labourer for a small building firm that never bought a policy, and you fall through an unprotected opening on site. The firm may have little money, but it may not be the only business involved. A main contractor, the site owner or an equipment supplier may share responsibility and may have their own insurance. A solicitor will look at all of them before deciding where to aim the claim.
What if your employer has closed down or gone into liquidation?
Closing a business doesn’t wipe out your claim. If your employer held Employers’ Liability insurance when you were injured, the Third Parties (Rights against Insurers) Act 2010 lets you pursue the insurer directly where the company is insolvent. You still have to prove your employer was at fault, but the business doesn’t need to be trading.
The first job is finding the insurer. The Employers’ Liability Tracing Office runs a database that lets injured people and their solicitors trace which insurer covered an employer, even when the cover was many years ago. You can start at the Employers’ Liability Tracing Office website, and a solicitor can usually run the search for you. A match is a starting point, not a guarantee that the policy will respond to your claim.
Some businesses close and reopen under a new name. That doesn’t automatically leave the old liability behind. Your solicitor will check which company employed you on the day of the accident and which policy was live at that time.
What if the insurer has failed too?
If the insurer has collapsed, the Financial Services Compensation Scheme can step in. It pays valid employers’ liability claims in full, as long as the insolvency practitioner dealing with the failed insurer accepts them. It can take a while, but it is a genuine safety net for this type of claim.
Which route applies to you?
| Your situation | Who may pay | What usually happens next |
| Employer still trading and insured | The employer’s insurer | The claim is made against the employer and handled by the insurer |
| Employer still trading but uninsured | The employer directly | Your solicitor checks the employer’s assets and whether anyone else shares responsibility |
| Employer in liquidation or dissolved, but insured when you were hurt | The employer’s insurer | The insurer is traced and pursued directly under the 2010 Act |
| Employer closed and the insurer has failed | The Financial Services Compensation Scheme | The claim is put to the insolvency practitioner and accepted claims are paid in full |
| Employer closed and no insurance can be found | Possibly nobody | Your solicitor looks for other responsible parties, but recovery may not be possible |
What to do first
These steps protect your position whatever the insurance turns out to be.
- Report The Accident And Make Sure It Is Recorded
- Ask To See The Employers’ Liability Certificate In Writing
- Keep Anything That Shows Who Employed You And Who Gave You Instructions
- Photograph The Scene If It Is Safe And Note Witness Names
- Get Medical Treatment And Keep Every Record And Receipt
- Speak To A Solicitor Before Signing Anything Or Accepting Cash
The last point matters more than it looks. If an employer tells you they have no insurance and offers a small sum to leave it there, you could be giving up a claim worth far more. A solicitor can check the insurance position for you before you decide.
Who else might be responsible?
Many workplace injuries involve more than 1 business. If you work through an agency, the agency or the business directing your work may carry responsibility. If you’re self-employed or a subcontractor, the question is usually who controlled the site, the equipment and the safety arrangements. Your job title doesn’t settle it. The facts do.
This is one reason it helps to speak to specialist accident at work solicitors early. Bring contracts, payslips, messages containing instructions and anything that shows who was in charge on the day.
Time limits and benefits
In England and Wales you generally have 3 years from the date of the accident, or from the date you first knew your injury was significant and linked to the accident, to start court proceedings. The rules sit in section 11 of the Limitation Act 1980. Different rules can apply to children and to people who lack the mental capacity to bring a claim.
Your employer closing down doesn’t pause that clock. Starting a personal injury claim sooner also means records, witnesses and insurer details are easier to find.
Separately from compensation, Industrial Injuries Disablement Benefit may be available if you became ill or disabled because of an accident at work. The amount depends on your circumstances, and it is worth checking while your claim is in progress.
A realistic view of recovery
A court judgment against an employer with no money doesn’t pay anything. That is the uncomfortable side of uninsured claims, and a good solicitor will tell you so early. They will look at the employer’s finances, any other responsible parties and the chance of a successful insurer trace before you commit time and energy.
Sometimes the honest advice is that a claim against the employer alone isn’t worth running. More often there is a route worth exploring, and it is better to find out sooner than later.
We act on a no win no fee basis. We will explain in writing exactly how fees and costs work before your claim starts.
Other legal help that can follow a serious workplace injury
A workplace injury can raise questions beyond the claim itself.
- Life Changing Injuries Are Handled By Our Serious Injury Solicitors
- If Treatment After Your Accident Made Things Worse, Medical Negligence Solicitors Can Advise
- Poor Care While You Recover In A Care Home Is Covered By Our Care Home Negligence Claims Team
- Money Worries Can Strain A Relationship, And Our Family Law Solicitors Can Help
- If A Loved One Has Died, Our Wills And Probate Solicitors Can Help With The Estate
- If You Need Long Term Care, Our Later Life Services Team Can Advise On Care Fees Planning
Frequently asked questions
Can I sue my employer if they have no insurance?
Yes. Your claim is based on your employer’s negligence, so a missing policy doesn’t remove it. The claim is made against the employer directly, and the question becomes whether they can pay. A solicitor can check their finances and whether anyone else shares responsibility before you decide how to proceed.
How do I find out whether my employer had insurance?
Ask for the Employers’ Liability certificate in writing, then have a solicitor search the Employers’ Liability Tracing Office database for the policy that applied when you were injured. If your employer won’t cooperate, say so when you get advice, because there are other ways to establish the position.
Can I claim if I’m self-employed or an agency worker?
Possibly. Employers’ Liability insurance is aimed at employees, so a claim usually turns on who controlled your work and the site. For agency workers that can be the agency or the business directing the work. For self-employed people it is often a main contractor or site owner. A solicitor needs to look at the facts.
Does a company going into liquidation end my claim?
No. If the company held Employers’ Liability insurance when you were injured, you can usually pursue the insurer directly under the Third Parties (Rights against Insurers) Act 2010. You still need to prove fault, and you should act well within the 3 year limit.
Talk to Mark Reynolds Solicitors
If you were hurt at work and you’ve been told there’s no insurance, or the business has shut, don’t assume the claim is over. Call us on 0800 002 9577 or contact our team for a free, no obligation conversation. We act for clients from our offices in Liverpool, Leigh, Runcorn and Warrington, and we take instructions across the country.