Umbrella Company Insurance: What Is Included When You Register?

Umbrella Company Insurance: What Is Included When You Register?

One of the benefits of using an umbrella company is the free insurance cover that is included. In many cases, contractors must be insured, or else their end-hirer won’t allow them to work on an assignment. We discuss the most common umbrella company insurance policies that are included when you register. Remember, policies will vary between insurers, so you already know exactly what’s covered before conducting any work through an umbrella company.

Employers’ Liability Insurance

Usual cover – between £5 million and £10 million

Employers’ liability insurance will protect the umbrella company against claims made by their employees (you – as you’ll become an employee of the umbrella when you register). This will protect the umbrella and you against any illness or injury that occurred during the work conducted in your assignment. It’s a legal requirement to have Employers’ liability insurance.

Public Liability Insurance

Usual cover – between £5 million and £10 million

If you cause injury or loss to a member of your team or the general public, public liability insurance will cover you against any legal proceeding that may occur.

Professional indemnity

Usual cover – between £5 million and £10 million

If you’re end-hirer (client) believes you have not fulfilled your requirements as part of the assignment and have been negligent or have made mistakes, professional indemnity insurance will help. Should your end-client decided to start legal proceedings against you because of loss of earnings, professional indemnity insurance will protect you.

Drivers Negligence Insurance

Usual cover – £5,000 – £15,000 per claim (up to £100,000 in aggregate). Usually, an excess applies (typically between £500 and £1,000).

There are umbrella companies that specialise in providing employment to drivers in the UK. If you’re a driver working through an agency or direct with an end-client, you will require driver’s negligence insurance. This is designed to protect you against accidental damage caused when conducting your role. The level of insurance really depends on the provider, and it’s essential you’re both satisfied with the level of cover you have and that your end-hirer is happy too.


Hopefully, this has given you a useful insight into umbrella company insurance. Remember, if you need additional insurance, speak with your umbrella company. They may be able to help by offering you higher cover for the insurances listed above, or they may be able to refer you to a preferred insurer (meaning you may be entitled to a discounted rate). 

Top 10 umbrella companies

If you haven’t already, please look at our top 10 umbrella companies. Some of them have fantastic special offers at the moment! It is also worth noting that all of our top 10 umbrella companies are accredited by the Freelancer and Contractor Services Association (FCSA). The FCSA is the UK’s leading professional body dedicated to ensuring the supply chain of temporary workers is ethical and compliant wit UK tax law. By choosing an FCSA accredited umbrella company – you can move forward with complete peace of mind.

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