Suffering an injury in an accident that wasn’t your fault is stressful enough as it is; you may also be wondering, ‘Can you sue a company that has ceased trading?’ if they were the ones responsible for your injury due to their negligent actions. If a company that has ceased trading had valid insurance at the time of your accident, you may be able to claim compensation from them. Here at Accident Claims, we want you to focus on your recovery; that’s why our solicitors will handle the personal injury claims process and legal action on your behalf.
Our expert No Win No Fee solicitors have years of experience working on a variety of personal injury claims, including those against companies that have ceased trading. They can use their knowledge to best support your claim and aid in your recovery.
If you would like to discuss your case and receive free advice on your next steps, you can contact us today at a time that suits you best.
- Call us on 0800 073 8801
- Contact us online
- Use our live chat
4.8Jump To A Section
- Can You Sue A Company That Has Ceased Trading?
- How To Find The Status Of A Company You Wish To Sue
- Will The Process Of Suing A Company That Has Ceased Trading Be Different To Other Claims?
- What Will I Need To Sue A Company That Has Gone Out Of Business?
- Suing A Business That Has Ceased Trading With Accident Claims
- More Information
Can You Sue A Company That Has Ceased Trading?
Yes, you can sue a company that has ceased trading for any injuries (physical or psychological) you have suffered that they are responsible for. In most cases, the claim is not made against the business itself, but against their insurer. Most companies are required to have insurance in place, such as public liability insurance or employers’ insurance, which can cover compensation claims even after the business has stopped operating.
You may still be able to pursue a claim through the company’s insurer if they had valid insurance at the time your accident and injury occurred. This is possible under legislation such as the Third Parties (Rights Against Insurers) Act 2010, which allows claimants to bring a claim directly against an insurer when the original company has ceased trading or has become insolvent.
However, if the company has been dissolved, tracing the insurer can sometimes be more complex, especially if records are difficult to access. One of our expert solicitors can help locate the relevant insurance policy and handle the legal process on your behalf.
Overall, while the company’s closure can complicate the process, it does not necessarily prevent you from claiming compensation. One of our expert solicitors could help you with the claiming process.
Companies That Are Dissolved
A company can be dissolved for a variety of reasons. It might be voluntarily dissolved by its directors when it is no longer required (even if the company is insolvent), or by Companies House if it believes the company is not carrying on business or is in operation.
A personal injury claim against a dissolved company could be made with us here at Accident Claims.
Liquidated Companies
Liquidation is a legal process in which a company ceases operations, its assets are sold (realised) by a liquidator, and the proceeds are used to repay creditors, usually resulting in the company’s dissolution.
The company will stop employing people and doing business. Once the company has been removed from the Companies House Register, the company will no longer exist.
When a company is liquidated, its assets are used to pay off its debts. Any funds left over will go to shareholders.
If that money has not been shared between the shareholders by the time the company is removed from the register, it will go to the state.
Companies Classified As Dormant
Your company may be classed as dormant if it’s not doing business (trading) and does not have any other income, such as investments.
Companies In Administration
When a company goes into administration, it is insolvent (unable to pay debts) and is placed under the control of a licensed Insolvency Practitioner (administrator) to rescue the business or sell assets to repay creditors.
It provides legal protection from creditors, allowing time for restructuring or an orderly sale, and often enabling the company to continue trading temporarily.
If you are still wondering, ‘Can you sue a company that has ceased trading?’ you can contact us today to discuss your case.
4.8How To Find The Status Of A Company You Wish To Sue
To find the status of a company you wish to sue, you can search for them on the Companies House website if they are a limited company, or on the Insolvency Register if they’re an individual or a partnership, if you cannot get hold of the company and want to confirm if they’ve gone out of business.
If the company has gone out of business, you will need to get the details of the administrator or receiver. This is the person who is dealing with settling the trader’s debts, and their names are usually on the website of the company that has ceased trading. You will need this information if you need to make a claim.
Do not worry about getting this information on your own; we can help you with this and with making a compensation claim against an insolvent company. Contact us today to learn more.
Will The Process Of Suing A Company That Has Ceased Trading Be Different To Other Claims?
Yes, the process of suing a company that has ceased trading will be different to other claims, as it will generally be more complex than suing an active company.
If the company is dissolved, it no longer exists as a legal entity, and you will need to restore it to the register. You may need to claim directly against the insurers, contact liquidators, or potentially restore the company to the register.
There is no need to worry about making your claim alone. You can contact us here at Accident Claims for expert solicitor help for your claim. We can handle all legal proceedings on your behalf while keeping you informed on the status of your claim.
What Will I Need To Sue A Company That Has Gone Out Of Business?
To sue a company that has gone out of business, you will need supporting evidence that proves they were liable for the injuries you have suffered. Below, we set out examples of steps you could take and evidence you could gather to help support your claim:
Receive Medical Attention As Soon As Possible
Regardless of whether you have suffered a minor sprain or a severe crush injury, you should seek medical attention for your injuries as soon as possible. This will not only aid your recovery, but the records created from it can also be used as evidence in your compensation claim.
Secure Evidence About The Accident
When it is safe to do so, you should secure evidence to support your claim. The sooner after the incident, the better. Examples of evidence could include:
- Your medical records detailing what injuries you suffered and the treatments they received.
- The contact information of anyone who witnessed your accident.
- Identify the insurance company that covered the business at the time of the accident to prove they are liable for paying compensation.
- Any available accident records, such as those from the workplace accident book.
For further examples, you can read our dedicated guide on what evidence is needed for a personal injury claim.
Make An Official Record Of The Accident
Creating a formal record is an important step, as it helps confirm when and where the incident occurred. The way this is done will depend on the circumstances of the accident.
In a workplace setting, this usually means ensuring the incident is entered into the accident book. Accidents in public places should be reported to the business owner, local authority, or relevant organisation responsible for the area.
Keep Records Of Your Symptoms And Losses
Keeping a personal record of the injuries you have suffered can help show how they have impacted your daily life and the physical and mental pain and suffering you have experienced. Additionally, tracking the financial losses you have suffered from injuries, such as lost earnings and travel costs, will help ensure that they are all accounted for in your final compensation settlement.
Get Advice From A Personal Injury Specialist
You can contact us here at Accident Claims to seek legal advice regarding your case from a personal injury specialist. We have years of experience handling a variety of different claims, including those against businesses that have ceased trading.
If you contact us today, we can give you free advice regarding your specific claim and also answer any questions you may have about the personal injury claims process.
Check You Are Within The Legal Time Limit
Generally, all personal injury claims must adhere to a 3-year time limit, which runs from the date the accident took place, as stated within the Limitation Act 1980. Even if a company has ceased trading, this time limit still applies.
However, some exceptions may apply to those who lack the mental capacity to handle their own claim or who were injured as a minor. To learn more about these exceptions, you can read our dedicated guide on the limitation period for personal injury claims.
If you are still wondering, ‘Can you sue a company that has ceased trading?’, you can contact us today. We can also offer you free advice for your case.
Suing A Business That Has Ceased Trading With Accident Claims
You can sue a business that has ceased trading here with us at Accident Claims. We have years of experience handling a variety of compensation claims, including those against businesses that have ceased trading.
Why Choose Accident Claims Expert Solicitors?
You should choose Accident Claims expert solicitors for your compensation claim, as we will use our years of knowledge and expertise to best help you with your particular claim. Some of the services we can provide to you include:
- Finding out if the company has officially ceased trading.
- Handling all communication with the insurers and liquidators regarding your claim.
- Helping you gather supporting evidence, such as witness contact statements and any relevant official documents from the company that has ceased trading.
- Ensuring your compensation covers both any physical and psychological pain you have suffered, as well as any associated financial losses.
Can I Still Sue On A No Win No Fee Basis If The Business Ceased Trading?
Yes, you can still sue on a No Win No Fee basis if the business has ceased trading here with us at Accident Claims. We specifically offer our clients a Conditional Fee Agreement, and with this in place, you will not need to pay us for your solicitor’s services:
- Prior to the claim starting
- While the claim is underway
- If the claim is not successful
However, if we are successful in your claim, you will pay a success fee. This is a legally limited percentage of your compensation. Don’t worry, we will discuss this fee with you before we start work on your claim, so you are prepared.
Get In Touch With Our Solicitors
Get in touch with us today if you are still wondering, ‘Can you sue a company that has ceased trading?’, or to discuss your case and receive free advice on working with our personal injury claims team.
- Call us on 0800 073 8801
- Contact us online
- Use our live chat
More Information
Additional guides by us:
- Learn more about how our accident at work solicitors could help you.
- Learn more about public liability claims.
- Information on what to do if the other party’s insurance company has denied liability.
Further external resources:
- Further guidance on claiming against a company in compulsory liquidation from Gov.UK
- Information on claiming compensation for injury or financial losses from Gov.UK
- Get more information about your injury or condition from the NHS
Thank you for reading this guide on ‘Can you sue a company that has ceased trading?’.
