Do I need Professional Indemnity Insurance if I use an Umbrella Company?

(2 minutes to read)

Due to the nature of work carried out by many contractors, insurance is necessary for when things could go wrong.

What is indemnity insurance?

Professional Indemnity Insurance, or PI insurance, is there to protect you from any claims that could be brought against you by a client.

Of course, not every contractor will need this type of insurance, but it is vital for those who give advice, have access to a clients’ confidential information, or carry out manual work or design.

Some of the professions that would benefit the most from PI insurance include:

  • Construction contractors
  • Designers / web designers
  • Architects
  • Business consultants
  • Engineers
  • Interior designers

Examples as to why a client might make a claim against a contractor could be due to dishonesty, loss of documents or data, negligence or just having an issue with the work carried out.

Will an umbrella company provide indemnity insurance?

An umbrella company should provide all the necessary insurances as part of their package with most including bundle insurances that generally cover all of their contractor base, which means that contractors don’t need to get separate insurances.

Take a look at our Best Umbrella Company page to check that you are choosing a good umbrella company that provides everything needed for your profession.

At Contractor Umbrella for example, we ensure that you are protected with employers’ liability insurance, public liability insurance and professional indemnity insurance.

For more information on what we can offer you, read our Benefits of Working for Contractor Umbrella page.

Is it always necessary to have indemnity insurance?

Although it is not a legal requirement to have this type of insurance, there are some agencies and clients that will refuse to engage with workers who do not have insurances.

There are many sectors where this type of insurance is not an obligation, but workers will still have it just in case so that they are protected should something happen.

Hopefully this page has answered some of your questions regarding umbrella company employment – if you have any more queries contact our team of experts on 01206 591 000 or email

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