Legal Question in Personal Injury in Massachusetts

Re: slip & fall

Hi,

This is a good question. When a company files for bankruptcy protection all their assets become property of the trustee in Bankruptcy. All cases against the bankrupt are subject to a "stay" order. You should consult a lawyer without delay to be sure you are listed among the Bankruptcy creditors.

I understand your question to ask whether the layer of insurance excess to the self insured amount, drops down to become primary coverage in the event of the bankruptcy of the underlying self insured company. Often it does not. I trust you won't fault me for failing to give an ironclad view but in my experience the excess insurers (whose agreement is with the insured) make the answer to this question clear.

As claimant you want as much coverage as possible available so you or your lawyer should push them on that.

Best wishes

Charles W. Cobb