What insurance is included when using an umbrella company?

When you register with an umbrella company, you will benefit from a comprehensive insurance package. Continue reading to discover what insurances are included when using an umbrella company.

What insurance is included when using an umbrella company?

Every compliant umbrella company will provide its employees with three main types of insurance:

• Employers Liability Insurance
• Public Liability Insurance
• Professional Indemnity Insurance

The amount of insurance cover will vary between providers, so it’s important to ask what cover is included before registering with an umbrella company. As an employee of Churchill Knight Umbrella, you will benefit from £10 million Employers Liability Insurance, £10 million Public Liability Insurance and £5 million Professional Indemnity Insurance.

Employers Liability Insurance

It is a legal requirement for most businesses to have Employers Liability Insurance, including those that employ or engage:

• Self-employed contractors
• Volunteers
• Full and part-time employees
• Apprentices
• People taking part in training schemes or work experience
• Temporary staff

Employers Liability Insurance safeguards the employer (e.g. the umbrella company) against claims made by their employees (you – as you’ll become an employee of the umbrella when you register). It is essential for employers to have this type of insurance to protect the umbrella company and you against any injury or illness that occurs during the work conducted in your assignment. The policy can cover the cost of compensation, legal fees, or damages that an employee could be entitled to when a claim arises.

Public Liability Insurance

Public Liability Insurance will cover against the cost of any legal proceedings that may occur if a contractor causes injury or loss to a member of the general public or another member of the team. Public Liability Insurance policy also provides cover against legal proceedings if something a contractor does causes damage to the end client’s property.

Professional Indemnity Insurance

When you register with an umbrella company, they become your employer, and any claims made against you will be made against the umbrella company and their Professional Indemnity Insurance. Professional Indemnity Insurance covers any claims brought against you by the end client seeking compensation if they believe you have not fulfilled your obligations as part of the assignment and the client is seeking compensation for any mistakes or negligence resulting in the client suffering financial loss. Professional Indemnity Insurance will protect against the costs of settling the claims and any additional costs or fees incurred for claims such as breach of confidence, defamation, negligence and intellectual property infringement.

Schedule a call to find out more about our umbrella service

Accredited by the FCSA, Churchill Knight Umbrella is an industry-leading PAYE umbrella committed to compliance. To request a free take-home pay calculation from an umbrella you can trust, please call 01707 871622 or complete the short form here. Alternatively, please schedule a call for a time that suits you, and a member of the team will contact you to discuss our PAYE umbrella service.