Is It Possible To Make A Claim Against A Liquidated Company?

By Lewis Winehouse. Last Updated 13th December 2023. If you have been injured because a business that owed you a duty of care acted negligently, you could be entitled to claim compensation from that company. You may have been a customer of this business, such as a shop or a restaurant, or you may have been employed by them. If the business has since been liquidated, dissolved or closed, many people worry about whether they could still make a personal injury claim for the money they are owed.

You can claim against a liquidated company, closed company or even insolvent company. However, it is a more complicated process.

If you wish to claim against a company that has ceased trading, trust Legal Helpline to handle your compensation claim. We are a trusted personal injury claims advisor and can provide you with expert advice if the company you are suing no longer exists. If you are eligible for compensation, we can provide you with a knowledgeable personal injury solicitor to handle your claim.

Call 0161 6969 685 now for your free consultation. You can also use our online claims form to contact us. If we can see that you are eligible to claim compensation, we will provide you with a No Win, No Fee solicitor from our panel, who will push to win you the maximum amount of compensation that you are owed.

Liquidated, closed or dissolved company compensation claims

Liquidated, closed or dissolved company compensation claims

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A Guide To Claims Against A Liquidated, Closed Or Dissolved Company

At Legal Helpline, our clients often ask us questions like: 

  • Could I claim against a liquidated company?
  • Could I claim against a company that has been dissolved?
  • Could I claim against a business which has closed down?” 

If you have been injured because a business acted negligently, it is only fair that you should be able to claim compensation for your injuries. If the defendant goes into liquidation, is closed or becomes dissolved, it becomes harder for the claimant (injured party) to make their claim.

In this guide, we will look at why people make accident claims for compensation. We will also explain what it means if a business goes into liquidation, is closed down, or is dissolved. We will explain how to go about suing a limited company that no longer exists or how to make a personal injury claim against a dissolved, liquidated or closed company.

Speak to a member of the Legal Helpline advisory team if you think you might be eligible to take legal action against a company that has ceased trading. They can provide you with free legal advice about how to make a claim.

 What Does It Mean If A Company Is Liquidated, Closed Or Dissolved?

Before we begin, let’s define some terms. We will also look at what it means if a company has closed. 

What Does Liquidation Mean?

Going into liquidation is a process that takes place when the directors of a business realise that their company is no longer financially viable. Liquidation is a process of the business settling their affairs as smoothly as possible. The company begins the process of liquidating its assets, which means it sells off everything it owns to pay back the money owed to creditors and debtors.

What Does Dissolved Mean?

Dissolving a company, also known as dissolution or striking off, is when a business’s name is removed from the register of businesses at Companies House. This advises the UK government that it has ceased trading. A business can only be dissolved if it has no outstanding debts or can pay these debts within 12 months.

Closed down is a general term which means that a business no longer exists. It is possible to make a claim against a closed company which has been liquidated or dissolved. However, the chances of succeeding are lower than claiming against a company which is still operating normally. In such circumstances, it will be necessary to search for employers’ liability insurance details for the time period in which the accident occurred. The claim is then made against the insurance company if they can be traced. 

Can you claim compensation against a company in administration? It can be possible to seek compensation against a company in administration, but different steps have to be taken, such as requesting the permission of the administrators and keeping them informed of the legal proceedings.

If you have been injured and the company responsible has stopped trading, call Legal Helpline today. We can advise you on the best course to potentially take to make a claim against a business that has ceased trading. Many businesses would have taken out insurance to cover claims if they are no longer trading. 

Types Of Accident Or Injury Which You May Claim For

There are various accidents you could make a compensation claim against a company that has ceased trading for. These include:

  • Head injuries – These could occur if an object falls from a height, such as on a construction site, if you are not provided with the appropriate personal protection equipment (PPE). Additionally, if you fall from a height, such as from scaffolding that does not have appropriate railings, you could suffer a head injury. These can range from mild concussions to very severe brain damage and traumatic brain injury.
  • Cuts, lacerations, stabbing-type wounds and amputations -These can be caused by faulty machinery and equipment as well as a lack of PPE. For example, you could suffer a traumatic finger amputation if a meat slicer does not have the appropriate finger guard or this has been removed. You may also suffer penetrating injuries if appropriate risk assessments have not been carried out and a sharp object pierces you. 
  • Broken bones– These could occur in slip, trip and fall accidents. You may slip on a wet floor and break your wrist if there is no wet floor sign. If your former employer did not carry out appropriate risk assessments, you could have tripped over trailing wires in an office accident. You may fall from a ladder and suffer a broken back if appropriate checks were not carried out prior to its usage.
  • Sprains, strains and soft tissue injuries – These could occur due to a lack of training. Your former employer should have provided you with any training that was required to carry out your work duties safely. For example, if you were not given manual handling training in how to pick up and safely carry an object, you could suffer a back injury.

However, if you would like to seek compensation for injuries suffered at an insolvent company, or a business that no longer exists or has stopped trading, you must satisfy the personal injury claims criteria. This means that you must prove that your former employer owed you a duty of care and you suffered injuries when they breached this.

If you have any questions about personal injury claims against companies that are no longer trading, please speak to a member of the Legal Helpline team.

Make A Compensation Claim

Make a compensation claim, even if the company has ceased trading.

How To Sue A Company That Has Ceased Trading – Top Tips

When you’re injured due to the negligence of a company, you should have grounds to claim compensation. If the company is no longer in business, you may be wondering how to sue a company that has ceased trading. This section includes some advice on what you can do to potentially claim against a company that has ceased trading.

  • Find the employers’ liability insurers: The insurance company needs to be identified. When the company was still in business, it should have had an insurance policy at the time of your injury, as is required by law for businesses. You could still potentially claim through their insurance, even if they have ceased trading.
  • Prove you were an employee: Gather proof to show that you worked there at the time of your accident. Employers owe employees a duty of care to take reasonable steps to keep them safe.
  • Provide evidence: Photos of the accident environment and photos of your resulting injury can both be used as evidence for your claim. You could also gather any relevant CCTV footage and medical reports.
  • Witness accounts: If they are willing, someone could give a statement about what happened to you if they witnessed the event. If you choose to hire a solicitor, they will gather these statements for you.
  • Use legal assistance:  Though not required by law, hiring a solicitor could mean you have support and guidance through every step of the claims process. If you choose a solicitor from our panel, they could help you gather the evidence you need to sue a company that has ceased trading.

Speak to our advisory team about making a workplace injury claim, even if the company has ceased trading. If you are left wondering if you can make a claim, or what the best course of action could be, an advisor could help.

Can A Dissolved Company Still Operate?

If you are wondering, ‘Can a that is dissolved still operate?’ the answer is no. After a company is dissolved, the Crown takes control of its assets, such as:

  • Intellectual property.
  • Land or property.
  • Mortgages.
  • Shares.
  • Any more of the company’s assets not listed here.

However, you may still be able to bring forward a personal injury claim against a business that has ceased trading. To be able to do this, you will need to find the employer’s liability coverage that was in place at the time of the accident. However, due to the company being dissolved, it may be difficult to trace the employer’s insurance. If the policy cannot be traced, there may be no one who could pay you compensation.

We recommend working with a solicitor that has experience in dealing with these types of claims and could help you with increasing your chances of receiving personal injury compensation. Our panel of expert solicitors have years of experience handling various types of personal injury claims and may be able to help you with your specific case.

Ceased Trading

If a business ceased trading, you might still be eligible to make a compensation claim.

Could I Claim Against A Company That Is In Administration?

A company going into administration is different from a company being liquidated or dissolved. What does it mean for a company to go into administration? It means that a company that is no longer financially viable may now be managed by an insolvency protection company, also known as an administrator. The insolvency protector will act to protect the company against requests for debts to be paid, or from parties which may try to make a compensation claim against them.

Administration is a short term solution. In the future, the company will either be able to begin trading again or will have to go into liquidation, in which case you may be able to make a claim. If you were injured or made ill due to negligent actions or inactions on the part of a business that is now in administration, call Legal Helpline to talk about your possible options.

Could I Claim Against An Employer That Has Ceased Trading?

Legislation, such as the Health and Safety at Work etc. Act 1974, states that employers owe their employees a duty of care. This means that if an employee is injured or made ill on the premises of their employer, or in an environment the employer controls, the employer could be held liable for their injuries. As a result, the employer may have to pay the employee compensation for their accident at work.

All businesses are legally required to have employers’ liability insurance to protect their employees. If you have been injured whilst working for a business that has now gone into liquidation or has been dissolved, you may be able to make an accident at work claim. Call us today to see if you could claim against a company which has ceased trading.

Claims Against A Dissolved Company- Calculating Compensation

We have included a table of injuries, and potential compensation awards for the pain and distress they may have caused. These are known as general damages and the table uses figures from the April 2022 version of the Judicial College Guidelines (JCG). If you were to sue a company that has ceased trading, your injuries may be valued with the help of this publication. Although we have included figures from the guidelines below, you should only use them as a guide. We’ve also included a figure at the top of the table to show you how compensation could be awarded for multiple serious injuries and special damages. It is not taken from the JCG and is only included for illustrative purposes.

InjurySeverityNotesPotential Compensation
Multiple Serious Injuries and Special DamagesVery SeriousSettlements could include compensation for more than one serious injury and expenses, such as loss of earnings and nursing costs.Up to £1,000,000+
Brain DamageVery SevereInjuries in this bracket require full time nursing care due to the symptoms, such as lack of a meaningful environmental response.£282,010 to £403,990
Leg Injuries Amputations (ii)Both legs have been amputated below the knee with the award considering the level of amputation. £201,490 to £270,100
Leg InjuriesSevere Leg Injuries - Very Serious (ii)These injuries cause permanent mobility problems.£54,830 to £87,890
Foot InjuriesAmputation of Both FeetThis bracket considers the lost of a useful ankle joint.£169,400 to £201,490
Back InjuriesSevere (i)Claimants in this bracket have suffered spinal cord and nerve root damage that causes a combination of very serious consequences, including severe pain, incomplete paralysis and impairments to their bladder, bowel and sexual functioning.£91,090 to £160,980
Hand InjuriesSerious Damage to Both HandsThese injuries cause permanent cosmetic disability and a significant loss of function to both hands.£55,820 to £84,570
Arm InjuriesSubstantial and Permanent DisablementIncluded in this bracket are fractures, either of one or both forearms that causes a significant residual disability. £39,170 to £59,860
Neck InjuriesSevere (iii)This bracket includes injuries that cause permanent significant disability and chronic conditions with the award considering how long the most serious symptoms last, prognosis and the extent of required treatment.£45,470 to £55,990
Facial InjuriesMultiple FracturesClaimants in this bracket have some permanent facial deformity as a result of multiple fractures of their facial bones.£14,900 to £23,950

Please speak to our advisers for information about claims against a liquidated company.

Special Damages Which May Be Applicable To Your Claim

If you successfully claim against a liquidated company, your compensation package may consist of two heads of claim: general damages and special damages. General damages are designed to compensate you for the pain, suffering and loss of amenity experienced as a result of the injury. Our compensation calculator section above provides estimates on the value of general damages.

Special damages are designed to compensate you for any financial losses or expenses you have incurred as a result of your injury.

What could you claim under special damages?

  • Travel expenses
  • Medical expenses
  • Mobility equipment expenses
  • Home adaptation expenses
  • At home care expenses
  • Loss of earnings if you had to take time off work to recover.
  • Loss of future income if your injuries are severe enough to prevent you from returning to work.

Why Choose To Claim Compensation Through Our Team?

Making a personal injury claim against a business that no longer exists is more complex than if you take legal action against a company that is still trading. You will need a knowledgeable and experienced solicitor to advise you on how to make a successful claim and to navigate the legal complexities. Fortunately, Legal Helpline can provide you with just that. Our service includes:

  • A one-to-one consultation with a claims advisor, who can help you take the right course of action.
  • An experienced personal injury solicitor, with decades of experience, working on your claim.
  • Our panel of solicitors works on a No Win, No Fee basis.
  • A promise that we will always push to win you the maximum amount of compensation you may be eligible to claim.

No Win, No Fee Claims Against A Liquidated, Closed Or Dissolved Company

Our panel of solicitors can give you the option of entering into a No Win, No Fee Agreement, also known as a Conditional Fee Agreement (CFA). The CFA is designed to offer claimants financial protection and the confidence to pursue justice. If you sign a CFA with a solicitor from our panel, you will not have to pay any fees upfront, nor will you have to pay any fees during your claim either. And if your claim is unsuccessful, you will not have to pay any of the fees your solicitor has incurred in pursuing your case.

If your claim is successful, your solicitor may seek a small contribution towards their costs. This is known as a ‘success fee’ and would be deducted from the compensation awarded at the end of the claim. Don’t worry, the success fee is legally capped and will be agreed with your solicitor before beginning your claim.

Legal Proceedings

Initiate legal proceedings with the support of a No Win No Fee solicitor.

Start A Claim Against A Liquidated, Dissolved Or Closed Company

To begin your personal injury claim, call Legal Helpline today on 0161 6969 685, or use our online claims form. If we can see that you may be able to claim compensation for your injuries, a solicitor will start working on your claim as soon as possible. So call now for the chance to claim!. We’re looking forward to working with you!

Resources To Help You Claim Against A Company

External Resources


Guide by HE

Edited by REG