One of the benefits of contracting through an Umbrella company is the freedom from administrative tasks, including arranging insurance coverage. When you work as an employee (as is the case with an umbrella company), why should you have to sort out your own insurance? This is where included insurance comes in to make life simpler.
So what insurance is typically offered?
Employer’s Liability insurance
Since the Employer’s Liability Act was introduced in 1969, every employer must hold a £5 million policy cover minimum. Umbrellas are no different, and as an employee of the one, you’ll be covered as well; at SmartWork, we have a £10m cover.
Companies that don’t have a policy can face fines of up to £2,500 per day.
This insurance covers both parties for claims resulting from 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 umbrella company employee is in contact with the public, or works 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 time, public liability insurance is a contractual requirement to protect the client, as the umbrella worker is not covered by the client’s existing policy, which is in place for their permanent employees.
Professional Indemnity insurance
Professional Indemnity insurance can cover a wide range of risks. Typically, claims arise from professional incompetence, negligence or unintentional breaches of confidentiality. Claims are usually tied to the financial loss suffered as a result of the mistake.
Having Professional Indemnity insurance will almost certainly be a contractual requirement, providing the client with the protection of being able to claim against the insurance.
Medical Malpractice Insurance
Umbrella companies work with numerous healthcare professionals, so it made sense for us to 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 is. While public liability insurance covers claims made for trips and falls, malpractice insurance insures against bodily or mental harm caused in the course of the professional doing his or her job.
So, what insurance does SmartWork provide for its contractors?
We meet and exceed industry accreditation standards and offer £10 million cover for Employers’ Liability and tailored coverage for healthcare professionals with a specialised Medical Malpractice policy. Our contractor employees enjoy a comprehensive cover included with our umbrella services:
£10 million Public Liability
£10 million Product Liability
£10 million Employers’ Liability
£5 million Professional Indemnity
£2 million Medical Malpractice
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 at 0800 434 6446 or e-mail info@smartwork.com.
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