Every compliant umbrella company will provide its employees with three main types of insurance: Professional Indemnity, Public Liability and Employer’s Liability. Some will offer their employees additional types of insurance as part of their package, but you should always use an umbrella company which offers the three main types of insurance as standard.
Each of the different types of insurance protects you in different ways. We provide a breakdown of the following:
If you provide any kind of professional service to clients then Professional Indemnity insurance is vital.
Professional Indemnity insurance provides cover for you in case your end client claims compensation for any mistakes or negligence on your part, which has resulted in the client suffering a financial loss. This type of insurance protects you against the costs of settling the claims and any additional legal fees that are incurred.
A Professional Indemnity policy will cover you against claims of defamation, negligence, breach of confidence and intellectual property infringement.
As an umbrella company employee, any claims made against you would be made against the umbrella company. This is because they are seen as your direct employer.
This is not required by law but it is worthwhile if members of the public come into contact with a contractor at the client’s site. The contractor (who is seen as the umbrella company employee) is likely to be required to be covered by Public Liability insurance as part of the contract, but will not be covered by the clients own Public Liability insurance.
Most umbrella companies offer Public Liability insurance because a lot of contractors will deal with the public in some way and could be out visiting clients offices on contracts. This is an important point to consider as it is commonly assumed that Public Liability is only needed if you have visitors to your own business premises. In fact, you could still be liable if you damage your client’s property when you visit their offices.
Public Liability insurance covers you in case something you do cause a member of the public or one of your colleagues’ injury, or another sort of loss. Additionally, you are covered if something you do causes damage to their property.
If you have any questions about joining an umbrella or umbrella company insurance, please give our friendly team a call on 01707 669023 or complete the short form below.
Employers Liability insurance is a legal requirement for any business with employees in the UK. Therefore, umbrella companies are required to hold a minimum of £5 million Employers Liability insurance so they can protect their employees if they are injured at work or become ill because of the type of work carried out.
Employers Liability insurance covers umbrella companies against any compensation and legal costs that may be incurred if they were to be sued by an employee who is claiming that they have become injured or ill as a result of the work they have done. Anyone who works for the umbrella company is also covered by this insurance, including self-employed individuals and contractors.
This insurance benefits the umbrella company as much as it does the employees that are also covered by the insurance.
Umbrella Company UK offers £25 million insurance cover to its employees – more than most umbrella companies. We will cover you with £10 million Employers Liability insurance, £10 million Public Liability insurance and £5 million Professional Indemnity Insurance – through our highly trusted insurance provider.
Our umbrella company specialists are happy to answer any queries you may have regardless of your industry, experience, or contract rate. Please do not hesitate to give us a call on 01707 669023, request a callback or contact us via the short form on this page.
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