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The employment status offered by umbrella companies also brings other significant benefits to contractors and freelancers. Firstly they would technically become an employee which means they can enjoy the same rights as a standard employee. These include holiday and sick pay. Contractors and freelancers who have self employed statuses have to provide for these themselves. Umbrella companies will also provide public liability insurance which means the company will represent them if any legal cases are bought against them.

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Contractors are often left with the decision as to whether to become a limited company or umbrella company employee. Both approaches offer benefits and personal circumstances often influence people's decisions. In this article we have explored the value of umbrella companies to contractors and freelancers.
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