When you move from a permanent role into contracting, insurance is one of those things that's easy to overlook when youre focused on getting your contract set-up…right up until the moment you need it. Whether you're contracting through an umbrella company or a personal limited company, understanding what cover you have (and what you don't) matters.
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Quick Answer • Contractors in Ireland typically need Employers Liability, Public Liability, and Professional Indemnity insurance. • If you contract through an umbrella company like Icon Accounting, core liability insurance is usually included as standard. • Sole traders and personal limited company contractors are generally responsible for arranging their own insurance cover. However, we can certainly organise the cover for you as part of your set-up if you wish to have this included. |
Why Contractors Need Insurance
As a permanent employee, your employer typically carries Employers Liability, Public Liability, and Professional Indemnity insurance on your behalf. As a contractor, that safety net often disappears. And in the unlikely event that something does happen, you want to ensure that you aren't exposed and have the adequate cover in place.
In addition, many client contracts and recruitment agencies in Ireland also require proof of insurance before you can start a role, particularly Professional Indemnity cover for anyone providing advice, expertise, or a professional service.
The Main Types of Insurance Contractors Need
Employers Liability Insurance
Covers you if a claim is made by anyone you employ (relevant if you run your own limited company and take on staff).
Public and Products Liability Insurance
Covers claims made by third parties — for example, if your work causes damage to a client's property, or if a member of the public is injured as a result of your work.
Professional Indemnity Insurance
Covers claims arising from professional advice, errors, or omissions in your work. This is often the most important cover for IT, engineering, and consulting contractors, and is frequently a contractual requirement from clients and agencies.
Is Insurance Included When You Contract Through an Umbrella Company?
This is where umbrella company contracting has a real practical advantage. Through Icon Accounting's PAYE Umbrella Company and Director Umbrella Company solutions, contractors are covered by Employers Liability insurance up to €14 million, Public and Products Liability insurance up to €6.5 million, and Professional Indemnity insurance up to €5 million — included as standard, with no separate policy to arrange or pay for.
For many first-time contractors, this is one of the more reassuring parts of contracting through an umbrella company: the core liability cover a client or agency is likely to ask for is already in place from day one.
Do Sole Traders and Limited Company Contractors Need to Arrange Their Own Insurance?
Generally, yes. If you're operating as a sole trader or running your own Personal Limited Company, you're responsible for sourcing and paying for your own Employers, Public, and Professional Indemnity insurance. It isn't automatically included the way it is with an umbrella company. However, we can absolutely source it for all of our clients too if you do not wish to shop the market. This is a cost (and an admin task) worth factoring in when comparing contracting structures.
How Icon Accounting Can Help
If you're contracting through Icon Accounting's umbrella company solutions, your core liability insurance is already sorted. One less thing to think about!
If you have any questions on the cover you need, or the cover we have in place, you can contact us today to find out more.
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Icon Accounting, Columba House, Airside,
Swords, Co. Dublin, Ireland, K67 R2Y9