Professional Employer Organizations Insurance Coverage

Professional Employer Organizations, or PEOs, offer executive employment management services. They offer these services so that business leaders can focus on running the day to day operations of their businesses. PEOs can essentially function as an agency’s Human Resources Department; they can process an agency’s payroll, administer employee benefits and conduct tax services. PEOs carry their own insurance policy, but if you’re working with a PEO you might want to consider obtaining peo insurance.

Why PEO Insurance is Important

Most businesses have a co-employment model of working with their PEOs and this means that the PEO assumes the liability of the company’s human resources. They become an employer of record, which is a huge responsibility. With that much responsibility, it makes sense that you would want to take as many precautions as possible.

What PEO Insurance Covers

Commercial General Liability

Professional Liability

Commercial Property

Additional Business Insurance Concerns

PEOs generally possess a basic business insurance policy, but you should ask to see their coverage before entering into a contract. You’ll want to make sure some of the most common workplace liabilities are covered in at least one, if not both, of your policies. Common liabilities include:

Slips and falls

Fire, flood, smoke or other natural disasters that can cause damage

Lawsuits against professional services

Cyber breaches