Contracting under an Umbrella Company - PI cover

[donna180]

Hi,

If I take a contract and work under an Umbrealla Company (IT sector), do I need to take out Professional Indemnity Insurance or am I classified as an Umbrella Company Worker. The Umbrella Company I'm thinking of, advertise that Contractors are covered by their own insurance so I'm thinking, it looks fairly safe from a liability perspective, however a friend has mentioned that I should opt for setting up a limited company, as my liability would be limited as a director.

If anyone thinks I should take out PII, any recommendations would be most welcome.

Thanks,
Donna

[donna180]

Thanks. Ignoring the short/long term, and the differences in net income from either vehicle, I'm purely interested in whether you're more or less liable for professional advice, if you work for an umbrealla, in the unlikely event of something going wrong, and whether PII would be worthwhile.

(I would have posted in the legal section but have to wait before I can post there. )