Umbrella agency and contractor liability

[killwater]

Good evening everyone
What is the extent of contractor liability when working through umbrella company?
Let's say I work on a project, screw up some work (not intentionally just making an error) and there is a huge loss for the ClientCo (like hundreds of thousand GBP). Theoretically umbrella has a PI insurance but if it will not be covered (let's say this one particular thing is excluded in insurance contract or insurance company solicitors will go nuts) will I be liable?
Logically I would expect that if the umbrella would be liable for the loss most of them should have already gone under just by pure statistics - if you have thousands of contractors at least one or two of them must screw up big time.
How does it look in the case of LTD - theoretically I know that there is better control of PI T&Cs, and you can just lose the lawsuit and declare LTDs bankruptcy, but would the contractor be liable personally if insurer decline to cover?

[LondonManc]

What have you done?

[killwater]

Nothing yet. I am just considering switching to LTD next year and I couldn't really find any information on this quite important topic.

[northernladuk]

Why don't you ask your umbrella. They are you employer so obliged to help you with questions like this.

I would be very surprised if PI declined to cover if you messed something up at a client. Isn't that fundamentally what it's for?

I think the big mistake you are making is using the assumption PI won't cover it. You made this twice in your post. First step for you and your peace of mind is to go read the T&Cs of PI products. QDOS might be a good bet. If you are confident PI covers everything all the other questions won't matter.

[SueEllen]

Unless what you have done is criminal then you will be covered if you brought the appropriate PI. What's appropriate? Depends on what you do.

[killwater]

Thank you for the replies.

@northernladuk
I make this assumption because it is an essence of my question. What will happen if the PI does not cover it?
As for asking the umbrella it is kind of a twisted relationship, isn't it? I mean paying your own employer makes one more of a client than employee, so one will be cuddled and told that everything is going to be ok.

[SunnyInHades]

Good evening everyone
What is the extent of contractor liability when working through umbrella company?

Zero. You walk away scot-free and clean, laughing with cash (60%ish) in your pocket, paid weekly.
You don't work for the end-client, you don't work for the agency, you work as a perm for the umbrella who (if they're worth their salt) will have full PI/PL and other insurance.

End-client: 'I'll sue you for this'
Umbrella employee: 'Good luck with that'

but if you're Ltd ...

[lucyclarityumbrella]

Why don't you ask your umbrella. They are you employer so obliged to help you with questions like this.

First step for you and your peace of mind is to go read the T&Cs of PI products. QDOS might be a good bet. If you are confident PI covers everything all the other questions won't matter.

I would start by requesting a copy of the umbrella companies insurance documents, there is no reason why they should not issue you a copy, or even check to make sure you cannot download them from their site. At least then you can have a proper read through it to see exactly what you are covered for.