One of the main reasons to kick start a career in contracting is the chance to escape the routine of permanent employment and take more control of your own future.
But nothing in life is free, right? In return for this increased freedom and flexibility, you’ll need to take on a bit more responsibility than you would as a “permie”.
One thing you’ll definitely need to do is take out insurance if something goes wrong. What’s more, most clients will expect you to have a policy in place before offering an assignment. Thankfully, all this is taken care of for you if you join an umbrella company.
Compliant umbrella companies will hold three types of insurance: Professional Indemnity, Public Liability and Employer’s Liability. Some will also provide their employees with personal accident insurance as part of their package.
Here’s a quick overview of the different policies available:
This provides protection if your end client claims compensation for any mistakes or negligence on your part, usually if they’ve suffered financial loss as a result. Professional indemnity is particularly important for roles such as IT specialists, accountants, lawyers and medical practitioners.
Professional Indemnity insurance protects against the cost of a claim, plus any legal fees incurred. Any claims made would be against the umbrella company as they are your direct employer.
Public Liability insurance provides cover if something you do causes a member of the public, or one of your colleagues, injury or other loss.
This policy is held by the umbrella company, and covers incidences where you are injured or become ill because of the type of work you carry out.
Personal Accident Cover
As a contractor, we know that being out of work affects you more than most – especially if an injury stops you working for a long period of time. Personal Accident Cover usually pays out a weekly benefit while you recover, as well as a lump sum in more serious cases.
Are there any exemptions to my policy?
Different insurance providers will have different exemptions. These could include the country of work, the type of industry you work in, your job role, or any underlying health problems. It’s therefore a good idea to speak to a specialist to find the best policy for you.
Over the years, we’ve developed an in-depth knowledge of contractors and their WorkStyle. We’re determined to make contractors’ lives as hassle-free as possible, leaving them free to concentrate on their assignments.
That’s why we provide our contractors with industry-leading, comprehensive insurance as standard:
- £10 million Employers Liability
- Up to £5 million Professional Indemnity
- £5 million Public Liability
What’s more, if you take up our Platinum employment package, you’ll also benefit from Personal Accident Cover. This covers:
- Accidents that occur while at work, including journeys to and from your assignment
- Up to £500 per week for injuries that prevent you from working
- Up to £100,000 lump sum payout in severe cases
- Up to £100,000 cover for loss of life at work
We’ve helped over 90,000 professionals make the leap from permanent employment and enjoy the benefits contracting can bring – so why not join them?