If you operate a professional employer organization, it is likely that you have co-employment agreements with your clients. These agreements commit you to meet a variety of obligations to your clients’ employees. If you do not have the right insurance products to cover these and other operational liabilities, your company may be responsible for settling costly claims. Here are four types of insurance you need to protect both your business and employees.
The most important insurance plan for a PEO to have is workers’ compensation. It protects employees and their families by paying for any costs associated with injury or death on the job.
Commercial General Liability
You also need a commercial general liability plan. It provides coverage for third-party injury or property damage occurring either on your organization’s premises or as a result of your operations or products.
This policy covers PEO liability in relation to professional negligence or wrongdoing. Some of the types of claims addressed by professional liability insurance include:
- Professional negligence
- Breach of duty
- Misleading statements
Finally, you need to protect the premises of your business. This plan will pay for damages resulting from fire, weather events, vandalism, and other causes.
These are the four basic policies needed by any PEO. However, depending on the nature of your company, you may also need other types of insurance products. By consulting an expert in PEO insurance, you can make sure you and your business are covered for any eventuality.