Protect Your PEO with the Right Policy
Professional employer organizations, or PEOs, are complicated entities. In the simplest of terms, think of a PEO as a staffing organization with superpowers – superpowers that must protect both the business and the men and women the business employs. It fulfills that business need with PEO insurance.
PEOs often partner with small businesses, helping provide a foundation for the business so it can grow. A PEO might manage payroll taxes, administrative functions, some human resources tasks – whatever helps the business. There, and through client co-employment agreement, stands the basis for PEO insurance. Co-employment agreements make clear how PEO employees are protected while working for a client, as well as how the PEO ensures the security of its employees during any professional engagement.
Work with an Insurer to Select the Best Coverage
To best protect itself during client engagements, a PEO should work closely with its insurance company to select the best coverage that will protect both the company, its employees and clients. A PEO should concentrate on shielding itself from some of the most common business liabilities, like errors and omissions insurance, which will help protect the PEO from lawsuits filed against the company.
Working closely with an insurance agent will help a PEO select the right policy. Agents can also help with coverage that will fit most budgets.