About Contractors Recruiters Guidance Referrals Blog Contact LOGIN JOIN NOW SWITCH NOW Umbrella Insurance Explained 09 JULY 2020 SHARE THIS POST One of the benefits of contracting via an Umbrella company is freedom from admin. This is no different when it comes to insurance. When you work as an employee (as it is in the case of an umbrella company) why should you have to sort out your own insurance, right? This is where included insurance comes in, to make life simpler. So what insurances are being typically offered? Employer’s Liability insurance Since the Employer’s Liability Act was introduced back in 1969, every employer is required to hold a £5 million policy cover minimum. Umbrellas are no different, and as an employee of one you’ll be covered as well; at SmartWork we have a £10m cover. Companies that don’t have a policy can face fines up to £2,500 per day. This insurance covers both parties for claims in case of illness or injury. Should the court order a payout to the employee, the employer’s liability insurance will cover the amount. Public Liability insurance This insurance is not required by law, but if the employee of an umbrella company is in contact with the members of public or work at the property of the client’s site, it is worthwhile having. The policy will cover any damage or injury claims arising from any accidents caused by the umbrella employee. Most of the times, public liability insurance is a contractual requirement to protect the client, since the umbrella worker is not covered by the client’s existing policy that is in place for their permanent employees. Professional Indemnity insurance Professional Indemnity insurance can cover a wide range of risks. Typically claims arising from professional incompetence, negligence or unintentional breaches of confidentiality. Claims are usually tied to the financial loss suffered as the result of the mistake. Having Professional Indemnity insurance will almost certainly be a contractual requirement to give the client protection of being able to claim against the insurance. At SmartWork, we provide a £10m insurance cover for our contractor employees. Medical Malpractice Insurance As an additional benefit to working with SmartWork, our contractor employees that work in the health sector are covered by our £2m medical malpractice insurance. We have a lot of health care professionals, so it just made sense that we have a policy in place that covers claims made for malpractice, negligence or breach of a duty of care. You would be, quite rightfully, asking what the difference between medical malpractice and public liability insurance? Well, while public liability insurance covers claims made for trips and falls, malpractice insures against bodily or mental harm caused in the course of the professional doing his or her job. We hope that this article has helped answer some of your questions. If you’d like to see what SmartWork can offer, please do not hesitate to contact us on 0800 434 6446 or via e-mail at info@smartwork.com For more relevant content aimed at freelancers and contractors, please visit the guidance section of our website and follow us on LinkedIn, Twitter and Facebook so you can see when we post a new article. SHARE THIS POST PREVIOUS PROS AND CONS OF USING AN UMBRELLA COMPANY NEXT UMBRELLA GUIDE: PENSION CONTRIBUTIONS EXPLAINED YOU MAY FIND THESE ARTICLES HELPFUL What is SDC (supervision, direction, control)? 09 NOVEMBER 2021 As of 6th April 2016, HMRC introduced new legislation which affects the claiming of tax relief on expenses for umbrella employees. ... READ ARTICLE What is an Umbrella Company? 20 JANUARY 2021 What is it? The primary function of an umbrella company is to organise payments for fix-term work undertaken by independent... READ ARTICLE Non-compliant umbrella schemes and how to spot them 12 NOVEMBER 2019 Since the off-payroll legislation reform hit in 2017, we’ve seen the popularity of the umbrella company increasing. With that... READ ARTICLE Whitefriars, Lewins Mead, Bristol, BS1 2NT Registered in England & Wales | Registration No. 4207299 About Contractors Recruiters Guidance Referrals Blog Contact Us HAVE QUESTIONS? Call SmartWork today on: 0800 434 6446 REQUEST A CALLBACK © 2021 smartwork.com Ltd | Designed by Lucid Design Terms & Conditions / Privacy Policy Gender Pay Statement Modern Slavery and Human Trafficking Statement