The function of a professional employer organization (commonly known as a PEO) is to provide an company or business who hires employees with the benefits and payroll functions with which to service the people who the company has brought on as employees. In other words, the benefits, pay roll, and workers compensation are outsourced to a third party organization. For organizations such as these, there are certain components which need to be integrated into the business in order to provide protection from unfortunate circumstance. One of these components is PEO insurance. This insurance is available to cover damage and loss that has been sustained by a professional employer organization due to litigation or other mishaps.
The Components of PEO Insurance
There are several policies available under the banner of PEO insurance. These policies can help protect certain organizations and minimize damage and loss that may occur throughout the functions of the business. The different forms of insurance include policies such as cyber liability, fiduciary liability, abusive acts, and general liability insurance. Learning about these different components of an insurance package is an important task for employers to conduct. Doing an adequate amount of research will give individuals a increased amount of empowerment and peace of mind. There are many different insurance agencies who provide such coverage. Contacting a few of these agencies in order to learn about their policies and practices can help employers to gain helpful insights that will help them to rest easy.