New Law Makes Pursuing Insurance Companies Easier

Judith Thompson

To speak to an expert solicitor about bringing a commercial claim against a company or an individual who has gone bankrupt, call 01271 343457 today. 

If you have a claim against an opponent, and that opponent goes bankrupt or becomes insolvent, what can you do? Traditionally, the answer would have been "not a great deal". Now that a new law has finally come into force, the answer is a little different, and gives hope to people who's right to claim against insolvent opponents would otherwise have been lost.

The Third Parties (Rights Against Insurers) Act 2010, has been a long time coming. Now that the act is in force, it applies to situations where either:

  • an insured party incurs a liability to a third party;
  • or its insolvency occurs after 1 August 2016.

(This means that the old law will apply where the liability was incurred, (i.e. the damage was done) and the insolvency occurred before 1 August 2016.)

The new law makes it easier for a third party to bring a claim directly against the insurers of an insolvent or bankrupt insured. Under the new law, there is now no requirement to add the insured as a party to the proceedings. It is also made easier for a third party to obtain information about the insurance arrangements of the insured. 

So how does this work in practice?

Example 1: If you are an employee of a business at which you suffer an injury at work (after 1 August 2016) and the company goes into liquidation (again after 1 August 2016), you would still be able to bring a claim against the liability insurers of your employer. 

Example 2: If you own a business which contracts with another business to provide certain goods or services and the company you have contracted with fails to deliver, and then goes insolvent, you would be able to claim directly against your opponent's insurance company. 

Example 3: If you instructed a solicitor to sell your house, and the sale was dealt with negligently, after which the law firm closed down, you would be able to bring a claim directly against the law firm's professional indemnity insurers.

We Can Help You With Your Claim

Samuels Solicitors is a niche litigation form, based in North Devon but with a nation-wide client base. We have many years of experience of bringing claims against employers, claims against businesses, and claims against other solicitors, including claims against their insurers. 

We will take matters on a conditional ("no win no fee") basis where appropriate. If your matter is not suitable for a "no win no fee" arrangement, we will discuss our other flexible funding options with you, to find a solution which you will be happy with.

We assess any matter for free, so contact us today for a discussion about how we can help.