The term umbrella companies make a different sense to the freelancers, self-employed and the contractors. It is no more the companies that deal with the products for the rainy weathers, but something more than that. This is a concept that brings various contractors and freelancers under the same body, and you would understand with this definition, why these providers were called as umbrella companies. A group of people, who are from the same niche, join in the relevant umbrella company. For instance, the freelancers from the web design niche can join a single body.