Why PEO Insurance Is Important

Although a Professional Employer Organization (PEO) is set up to help other companies with risk management, recruiting, workers’ compensation, and other aspects of business, they need someone to watch their back as well. A PEO should always have proper insurance in order to stay in business and remain successful. The following are some reasons to have PEO insurance:


  • Client Relationships – If a PEO cannot maintain financial credibility, they will more than likely lose credibility with their clients. With proper insurance coverage, they do not need to worry about financial ruin if they are victims of a natural disaster, theft, or lawsuit.
  • Employee Satisfaction – It is important that a PEO has proper insurance so that their employees will perform efficiently. Employees who feel like they have security through insurance tend to make better decisions while at work, which increases productivity overall.
  • Peace of Mind – The owner of a PEO does not have to stress when he has the coverage of PEO insurance. Proper insurance allows him to handle all of the other many responsibilities he has, without worrying about the risks that his company faces on a daily basis.


Whether you run a Professional Employer Organization, or were put in charge of finding proper protection for the organization, ensure that your company is covered with PEO insurance. Speaking to your insurance provider could be the best step you take to ensure that the protection is complete.


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