At a minimum, all Umbrella Companies should offer Professional Indemnity and Employers liability insurance as standard. Some Umbrella Companies will also offer their contractors Public Liability Insurance. An agency will not let you use an Umbrella Company if they do not have the necessary insurances.

Professional Indemnity Insurance

Professional indemnity insurance provides financial protection for your Umbrella Company against compensation sought by a client if you have made mistakes or are found to have been negligent in some or all of the services that you provide for them. Claims can occur where a client suffers a financial loss as a result of alleged mistakes or omissions on your part. Professional indemnity insurance will also cover any legal costs.

Public and Employer’s Liability Insurance

All employers require employer’s liability insurance. Without it, the health and safety executive can shut you down.

Employer’s liability insurance will cover your umbrella company if you have an accident or are made ill at work and it’s found to be your fault. Note that this only covers the employees of your umbrella company – if you want to cover against claims by third parties (i.e. the public) then you will also require public liability insurance.

Public liability insurance will cover you if someone is accidentally injured by you or your business operation. It will also cover you if you damage third party property while on business. The cover should include any legal fees and expenses which result from any claim by a third party.

Click here for information on the insurances that Redego provide as standard.