At a glance
- You can still make an asbestos claim if your former employer has closed or ceased trading.
- Where a valid claim is established, compensation may be paid by the employer’s historic employers’ liability insurer rather than the defunct business itself.
- Solicitors can use HMRC employment records, the Employers’ Liability Database and other historical sources to trace employers and insurers.
- If no employer or insurer can be traced, government schemes can provide financial support for eligible asbestos-related conditions.
- Families can pursue certain claims after a loved one dies, while separate compensation routes can also exist for secondary asbestos exposure.
- Asbestos claims are subject to legal time limits, so seek advice as soon as possible after diagnosis.
Receiving a diagnosis of an asbestos-related condition can be frightening enough without discovering that the company responsible for your exposure disappeared years ago.
You may remember the factory, shipyard, building site or workshop clearly, but find that the business has changed name, been dissolved or closed completely.
That doesn’t automatically prevent you from claiming.
Asbestos-related diseases can take decades to develop, so the legal and insurance system has ways of dealing with claims involving historic employers. Solicitors can trace old insurance policies, reconstruct your employment history and investigate alternative compensation schemes where no insurer can be found.
This guide explains what happens when you want to make an asbestos claim and the company has closed, and what evidence can help establish exposure from decades ago.
Can I make an asbestos claim if my former employer has ceased trading?
Yes, you may still be able to pursue a claim even if the company responsible for your asbestos exposure has closed or dissolved.
This situation is common because asbestos-related diseases have very long latency periods. Mesothelioma, asbestosis and other asbestos-related conditions can emerge decades after the exposure that caused them.
By the time you receive a diagnosis, the company you worked for may no longer exist.
The important questions are:
- Which company employed you?
- When did you work there?
- How were you exposed to asbestos?
- Did the employer fail to protect you?
- Can the company’s historic insurer be identified?
Where an Employers’ Liability insurer covered the business during the relevant period, the policy can provide a route to compensation even though the employer itself has disappeared.
Time limits still apply, so seek specialist advice promptly after learning that you have an asbestos-related condition.
Who pays asbestos compensation if the company is closed?
When a company has closed, your solicitor will investigate whether an insurer covered its liability for workplace disease during the period when you were exposed.
Employers’ Liability Insurance became compulsory in Great Britain from 1st January 1972 under the Employers’ Liability (Compulsory Insurance) Act 1969 and the regulations bringing it into force. Before that date, insurance wasn’t compulsory, although many businesses still chose to hold Employers’ Liability cover.
That distinction is important, particularly in older asbestos cases.
If an insurer can be traced, the claim can be pursued against the appropriate defendant with the historic insurer dealing with the liability.
You aren’t personally seeking money from a former director, manager or supervisor.
At Injury Lawyers 4u, we can put you in touch with solicitors experienced in industrial disease claims, who can investigate the employment and insurance history behind your exposure.
How we trace historic employers’ liability insurance
Finding an insurance policy from decades ago can sound impossible, but there are several established ways to investigate.
The Employers’ Liability Tracing Office (ELTO) was created specifically to make historic Employers’ Liability insurance easier to trace. Its database now contains more than 40 million policy records spanning more than a century.
Our experienced solicitors can build the picture using several sources.
1. Requesting your HMRC employment history
HMRC can provide employment-history information specifically for compensation claims, including industrial disease cases such as asbestosis.
For recent employment, records are available through your personal tax account. For older periods, a paper request can be made for employment records from any year held by HMRC. A solicitor can also request the information with your written consent.
These records can help establish:
- The names of former employers
- When you worked for them
- The relevant periods of possible exposure
2. Searching the Employers’ Liability Database
The Employers’ Liability Database contains:
- Policies issued or renewed from April 2011
- Older policies where claims have subsequently been made
- Historic policies voluntarily added by insurers
It isn’t a complete archive of every policy ever written, so an unsuccessful database search doesn’t necessarily mean that no insurance existed.
3. Carrying out further historical investigations
Where a policy isn’t immediately found, solicitors can investigate other records, including:
- Companies House information
- Insolvency and liquidation records
- Old business directories
- Trade union records
- Local archives
- Previous claims involving the same employer
- Insurance-market records
- Former colleagues’ evidence
The aim is to connect the company, your employment period and the insurer that covered the relevant risk.
Proving asbestos exposure before 1961
If your exposure to dangerous dust occurred before 1961, tracing your employment history can present a unique challenge. If your injury occurred a while ago, there may be fewer employment records available. In these cases, our solicitors can build a picture from different sources.
Evidence can include:
- Your own witness statement: A detailed account of where you worked, the jobs you performed, the materials you handled and how asbestos dust was created.
- Statements from former colleagues: Co-workers can confirm the working environment, asbestos products and lack of protective measures.
- HMRC records: These can establish your employment history even where the company itself no longer has records.
- Trade union material: Membership records, safety reports or historical correspondence can provide useful evidence.
- Local and industry archives: Newspapers, photographs and business directories can help establish what work took place at a site.
- Previous asbestos claims: Evidence from other workers employed at the same company or location can sometimes help establish historic working conditions.
- Medical evidence: A respiratory physician or other specialist can consider your diagnosis alongside your exposure history.
What if no insurance company can be traced?
Sometimes, even after extensive searches, neither a viable employer nor an Employers’ Liability insurer can be identified.
That doesn’t always leave you without financial support.
Different statutory schemes exist for asbestos-related diseases, and the correct route depends on your diagnosis, how you were exposed and whether a civil claim remains possible.
Diffuse Mesothelioma Payment Scheme
The Diffuse Mesothelioma Payment Scheme (DMPS) is a scheme of last resort for people with diffuse mesothelioma caused by negligent asbestos exposure during employment in the UK.
It applies where:
- You were diagnosed with diffuse mesothelioma on or after 25 July 2012.
- The disease resulted from asbestos exposure while working in the UK.
- The employer responsible can’t be traced or no longer exists, or its Employers’ Liability insurer can’t be found.
- You can’t bring a civil claim against an employer or insurer.
- The other eligibility requirements are met.
The scheme was established precisely because some former employees with mesothelioma couldn’t obtain compensation after historic employers disappeared and insurance records were lost.
A DMPS application must be made within three years of diagnosis. Evidence can include your diagnosis, employment history, witness evidence and the results of attempts to trace the employer or its insurer.
The 2008 diffuse mesothelioma scheme
There’s also a separate government scheme commonly known as the 2008 scheme.
This can be particularly relevant where the asbestos exposure didn’t happen as an employee.
For example, eligibility can include people who were exposed:
- Through a family member, such as by washing asbestos-contaminated work clothes
- While self-employed
- Through environmental asbestos exposure
The scheme has separate eligibility requirements and a 12-month claim deadline from diagnosis.
This is different from the DMPS, so it’s important not to treat the two schemes as interchangeable.
Pneumoconiosis etc. (Workers’ Compensation) Act 1979
A separate lump-sum payment can be available under the Pneumoconiosis etc. (Workers’ Compensation) Act 1979.
The scheme covers specified dust-related diseases, including:
- Pneumoconiosis, including asbestosis
- Diffuse mesothelioma
- Unilateral or bilateral diffuse pleural thickening
- Certain asbestos-related lung cancers
Eligibility conditions apply. Among other requirements, the disease must have arisen from employment, you must be receiving Industrial Injuries Disablement Benefit for a qualifying condition, and civil action must not be available because the former employer has stopped trading.
Claiming on behalf of a family member or for secondary exposure
Asbestos claims don’t always end when the person who was exposed dies.
If a loved one dies from an asbestos-related disease, their estate and certain family members can still have legal rights.
The exact claim depends on factors including:
- Whether a personal injury claim had already started
- Where in the UK the claim is brought
- The deceased person’s exposure history
- Whether financial dependants have suffered losses
- Which statutory compensation schemes apply
Dependants can also be eligible for particular government asbestos payments. For example, both the 2008 mesothelioma scheme and DMPS contain provisions allowing eligible dependants to apply after the sufferer has died.
What about secondary asbestos exposure?
You can also have a claim where you didn’t work directly with asbestos yourself.
One of the most notorious forms of secondary exposure occurred when workers returned home with asbestos fibres on their overalls, hair or belongings. Partners and family members could then breathe in the dust while shaking out or washing contaminated clothes.
Whether a civil claim can be brought depends on the circumstances, including when the exposure occurred, which organisation was responsible and what duties it owed.
Where a civil claim isn’t available, the 2008 diffuse mesothelioma scheme specifically recognises exposure through a relative, including washing their contaminated clothing.
This means you shouldn’t assume that a lack of direct employment with the asbestos company prevents you from receiving support.
What is the time limit for an asbestos claim?
For personal injury claims in England and Wales, the standard limitation period is three years.
In an asbestos disease case, that period doesn’t simply run from the date you breathed in asbestos.
The relevant starting point can be your date of knowledge.
Under the Limitation Act 1980, this involves when you knew, or could reasonably have been expected to know, important facts including that:
- You had a significant injury or disease
- It was attributable at least partly to the acts or omissions you are complaining about
- You knew the identity of the relevant defendant
You don’t need to understand the legal concept of negligence before time starts running.
Diagnosis is often a significant point in an asbestos case, but it isn’t automatically the date of knowledge in every situation.
That’s why you should seek advice promptly rather than trying to calculate the deadline yourself.
Ready to talk?
Discovering that your former employer has closed doesn’t mean your asbestos claim has reached a dead end.
We can investigate:
- Your employment history
- The company responsible for your exposure
- Historic insurance policies
- Former colleagues and witnesses
- Government compensation schemes
- The legal deadline that applies to your claim
The sooner we start looking into what happened, the easier it can be to secure records and trace the people or organisations involved.
We’re here to support you
If you or a loved one has been diagnosed with an asbestos-related illness, you don’t have to work out where to turn by yourself.
We’ll help you understand your options, explain what evidence may be needed and support you through the next steps.
Eligible claims can be handled on a no win, no fee basis, so you won’t need to pay upfront legal fees. Terms apply.
Ready to talk? Our friendly team is here to help.
Get in touch for a free, confidential assessment of your asbestos claim.
FAQs about asbestos claims and closed companies
Can I claim for asbestos exposure after 40 years?
Yes.
Asbestos exposure happening 40 or more years ago doesn’t automatically prevent you from claiming.
These diseases can take decades to develop, and the limitation period doesn’t simply start when the exposure happened.
The legal deadline depends on your date of knowledge, so seek advice as soon as you receive a diagnosis or learn that your illness could be related to asbestos.
What happens if no legacy insurer can be traced for a closed company?
Other compensation routes can be available.
If you have diffuse mesothelioma caused by negligent workplace asbestos exposure and can’t trace the employer or insurer, you can be eligible for the Diffuse Mesothelioma Payment Scheme.
Other schemes include the 2008 diffuse mesothelioma scheme and payments under the Pneumoconiosis etc. (Workers’ Compensation) Act 1979.
Each has different eligibility criteria and deadlines.
Do I have to go to court to claim against a closed company?
No, not necessarily.
Many asbestos claims are resolved through negotiation without a final court hearing.
Court proceedings can still be needed where liability or compensation is disputed, or where proceedings must be issued to protect the legal deadline.
Your solicitor will explain what is required in your case.
Who pays compensation if my former employer has closed?
Where a historic Employers’ Liability insurer can be identified, it can provide the insurance route for a civil claim even though the former employer no longer trades.
If no insurer or viable defendant can be traced, a statutory compensation scheme can be available depending on your diagnosis and circumstances.
Can my family claim after I die?
Yes, certain claims can continue or be brought after death.
The estate and eligible dependants can have separate rights under civil law, and dependants can also qualify for some statutory asbestos compensation schemes.
The rules and deadlines differ, so specialist advice should be sought promptly.
Can I claim if I was exposed to asbestos from my partner’s work clothes?
Yes, there can be a route to compensation for secondary asbestos exposure.
A civil claim depends on the circumstances and the legal duties owed at the time of exposure.
If you develop diffuse mesothelioma and a civil claim isn’t available, the 2008 government scheme expressly includes people exposed through a relative, such as by washing asbestos-contaminated clothing.