If your employer has gone bust — whether through liquidation, administration or simply closing down — you can usually still claim compensation for a workplace injury. UK employers are legally required to hold employers' liability (EL) insurance under the Employers' Liability (Compulsory Insurance) Act 1969. That insurance survives the employer's insolvency, and you claim against the insurer, not the company itself. The Employers' Liability Tracing Office (ELTO) can help you find the insurer.
This situation causes understandable worry: you were injured at work, and now the company no longer exists or cannot pay. But the legal framework in the UK is designed to protect you. This guide explains the routes available. We are an independent information service, not a law firm.
Why employers' liability insurance is the key
The Employers' Liability (Compulsory Insurance) Act 1969 requires virtually every UK employer to hold EL insurance with a minimum cover of £5 million (in practice, most policies provide £10 million or more). It is a criminal offence to trade without it. The crucial point is that the insurance policy in force at the time of your accident remains valid regardless of what later happens to the employer.
This means:
- If the employer entered administration, liquidation or a CVA, the insurer still covers your claim
- If the employer was dissolved (struck off Companies House), the policy still existed and the insurer is still liable
- You claim against the insurer, which has the funds to pay
How to trace the insurer
Finding the right insurer is often the main practical challenge. Steps to take:
- Search ELTO (elto.org.uk) — the Employers' Liability Tracing Office database holds records of EL policies and is the first port of call
- Contact the insolvency practitioner — the administrator or liquidator handling the employer's affairs should have records of insurance policies
- Check Companies House — annual returns and accounts sometimes name the insurer
- Ask colleagues or trade unions — former co-workers or union reps may know or have documents
- Contact the ABI — the Association of British Insurers may assist with tracing
Insolvency vs dissolution
| Situation | Company status | Your claim route |
|---|---|---|
| Administration / liquidation / CVA | Company exists but cannot pay debts | Claim directly against EL insurer (with leave of court if in administration) |
| Dissolved (struck off) | Company no longer legally exists | Claim against insurer under the Third Parties (Rights against Insurers) Act 2010, or apply to restore the company |
| Informally closed | Company may still exist on paper | Standard claim against company/insurer — check Companies House for current status |
Claiming directly against the insurer
The Third Parties (Rights against Insurers) Act 2010 allows you to bring your claim directly against the insurer without first obtaining a judgment against the defunct employer. This is now the standard route and avoids the old problem of needing to sue a company that cannot respond. Your solicitor handles this process.
What if the employer had no insurance?
Although rare (because it is a criminal offence), some employers fail to insure. In this case:
- Director personal liability — directors who allowed the company to trade uninsured may be personally liable
- FSCS — if the insurer itself became insolvent, the Financial Services Compensation Scheme may cover the claim
- CICA — if the workplace injury resulted from a criminal act (assault, deliberate endangerment), a CICA application may be possible
Time limits
The standard three-year limitation period under the Limitation Act 1980 applies regardless of the employer's financial status. Insolvency does not extend or pause it. For industrial diseases with delayed onset, the clock may run from the date of knowledge. Act promptly and seek legal advice early.
Frequently asked questions
Can I claim for a workplace injury if my employer has gone bust?
Usually, yes. UK employers are legally required to hold employers' liability (EL) insurance under the Employers' Liability (Compulsory Insurance) Act 1969. That insurance survives the employer's insolvency, so you claim against the insurer. The employer going bust does not extinguish the insurance policy.
How do I find my employer's insurer?
Start with the Employers' Liability Tracing Office (ELTO) at elto.org.uk. ELTO holds a database of EL policies. Your solicitor can also check Companies House records, contact the insolvency practitioner handling the employer's affairs, or ask the Association of British Insurers.
What is the difference between insolvency and dissolution?
An insolvent company still exists but cannot pay its debts; it may be in administration, liquidation or a CVA. A dissolved company has been struck off the Companies House register and legally ceases to exist. Both situations allow you to claim against the EL insurer, but a dissolved company may need to be restored to the register first.
What if the employer had no insurance?
Failure to insure is a criminal offence. You may be able to claim against the employer's directors personally, or in some cases the Financial Services Compensation Scheme (FSCS) may help if the insurer itself became insolvent. CICA may also be an option if the injury arose from a criminal act. Specialist legal advice is essential.
Does employer insolvency affect my time limit?
The standard three-year limitation period under the Limitation Act 1980 still applies. Insolvency does not automatically extend it. However, in practice, claiming against the insurer directly can proceed without the same delays as claiming against the company itself. Act promptly and seek legal advice early.
Can I claim against the insolvency practitioner?
Not usually. The insolvency practitioner (administrator, liquidator) is not personally liable for your injury. Your claim is against the employer (via its insurer). However, the insolvency practitioner can provide useful information, including the identity of the EL insurer and relevant employment records.
Get help from official, free sources
- ELTO (elto.org.uk) — trace employers' liability insurance
- Companies House — check company status
- Solicitors Regulation Authority (SRA) — check a solicitor is regulated
- Citizens Advice — free, impartial guidance
Related guides: accident at work claims, claims against dissolved companies, construction accident claims, industrial disease claims, and time limits.