Third Party Administration Coverage
If your company’s administrative team is continually bogged down with the paperwork, processing and benefit duties associated with HR, you might want to look into outsourcing those services. A Professional Employer Organization (PEO) handles many of those behind-the-scenes duties of human resources. This allows your employees to focus on important tasks that deal with revenue and profit. If you operate a PEO, carrying the right PEO Insurance gives you a better chance of being selected for large business accounts.
Even though a PEO reduces some of your control with regard to procedures, policies and issuing payroll, there are still liabilities and risks that your employees may address. For this reason, a successful PEO will carry an insurance policy that looks out for their best, but your company’s as well. Strong PEO coverage should include:
Employee Benefits Liability
Employment Practices Liability
In short, a PEO insurance policy work much like a commercial business policy. The key difference is the inclusion of coverage for needs that deal with with broadly defined professional services, duty to defend, the ADA, the Equal Pay Act and other areas specific to the operations of a professional employer organization. By choosing an agency that is protecting itself, you are making an investment into the stability of your own organization.