Umbrella vs. Ltd Company - similar liability protection?

[jayflat]

If I go with an umbrella company, am I afforded the same liability protection (for my work) as a limited company?

AFAIK, a limited company - liability is limited to the paid up capital of the company (very little if I set it up). An umbrella acts as my employer - despite offering PI insurance, I suppose any legal challenge would be against the umbrella company, rather than me personally...

Could be important, should a case be brought some time after the contract (and insurance) has ceased.

There's lots of info about about tax liability for umbrellas; but it's hard to find anything about general liability.

[jayflat]

Thinking about it, I guess the PI insurance provides recourse for the umbrella company against the employee should things go wrong, not the client and third parties?

[Sally BFCA]

Thinking about it, I guess the PI insurance provides recourse for the umbrella company against the employee should things go wrong, not the client and third parties?

Correct. The contract will be between the client and the umbrella company. The PI policy will be in the name of the umbrella company for whom you will be an employee. The liability remains with the umbrella company not you personally.

[jayflat]

That sounds logical.

I can think of one notable umbrella where apparently that isn't the case; but I suppose it's because they don't (implicitly) 'provide' PI insurance.