Compliant umbrella companies will provide their employees with comprehensive insurance cover – at no additional cost. Our latest video explains what insurance is included when using an umbrella company. We hope you find it helpful.
Transcript – What insurance is included when using an umbrella company?
One of the benefits of using a compliant umbrella company is the free insurance cover included as part of the service. The most common umbrella company insurances are Professional Indemnity, Public Liability and Employer’s Liability. Some umbrella companies will offer their employees additional types of insurance as part of their service. But you must always use an umbrella company offering the three main insurance types as standard.
Professional Indemnity insurance is vital if you provide professional services to a client. Professional Indemnity insurance provides cover if the end client decides to take legal action against you for negligence, resulting in the client suffering a financial loss. Professional Indemnity insurance protects you against the costs of settling the claims and any additional legal fees. A Professional Indemnity policy will cover you against claims of negligence, defamation, intellectual property infringement and breach of confidence.
The second insurance type of insurance you will be covered by is Public Liability insurance. This type of insurance is not required by law but is worthwhile to have. Most umbrella companies include Public Liability insurance as part of their service because most contractors will come into contact with the public in some way when working on an assignment or visiting clients’ offices. Public Liability insurance will cover you against any legal proceeding that may occur if you cause injury or loss to a member of the team or the general public.
Employer’s Liability insurance is the final insurance you will be covered by when you register with an umbrella company. Employer’s Liability insurance will protect the umbrella company against claims made by their employees. When you register with an umbrella company, you will become an employee of the umbrella company. Therefore, the insurance will protect the umbrella company and you against any injury or illness incurred while working on the assignment for your end client.
Our site has plenty of helpful information about umbrella companies
For more information about umbrella company insurance and the benefits of using an umbrella company for your payroll, please visit the following pages:
- Advantages and disadvantages of umbrella companies
- Umbrella companies explained
- Compare umbrella companies
- Best umbrella companies
Please visit the new Umbrella Companies YouTube Channel
Our new YouTube Channel features over a dozen short but informative videos about important umbrella company-related topics. Please check it out now! We are regularly adding new content.
Top 10 umbrella companies
If you’re seeking a new umbrella company that provides a reliable and compliant payroll service, we have just the resource that can help! We have collated a list of our top 10 umbrella companies, and they’re accredited by either the Freelancer and Contractor Services Association (FCSA) or Professional Passport. Please check them out now – some have special offers that you won’t want to miss!