No PL insurance and someone making a claim - looming panic, please help!

[paulapantsdown]

Can't go into real detail, but due to cashflow problems we let our business PL insurance expire. We had not made a claim for 10 years and hoped we would get away without it for another year until things got better.

Anyway, a sub contractor of ours caused someone in a building he was working on to have a slight trip. The person hopped up, seemed fine and carried on off home. Apparently they are now in terrible debilitating pain and will be making a claim against the owners of the building, whos insurers have of course told them that it is us they should sue.

I am out of my mind with worry over this. Are we talking 10's of thousands here once we have to pay 2 lots of solicitors? Should we offer a sum now to stop any action? We have been standing on the edge of the cliff for the last 2 years, and this could push us over it.

Any advice much appreciated.

Shouldn't you have a claim against the sub-contractor? Do they have insurance? I would expect your contract with your sub-contractor to include an obligation on their part to indemnify you for any loss caused by their negligence so hopefully this won't ultimately come down to you. Have you checked that contract? It may also have obliged the sub-contractor to maintain PL insurance.