Why Professional Employer Organizations May Require Thorough Special Insurance

Why Professional Employer Organizations May Require Thorough Special Insurance

If you run a professional employer organization, or a PEO for short, you may require special staffing insurance and other types of targeted PEO insurance. Because PEOs face several risks in the normal course of business, having the appropriate insurance is an important part of maintaining company security and avoiding legal or financial problems. Here’s why your PEO could require special insurance.

It Could Provide Your PEO With Several Types of Employment Practices Liability Coverage

If you contract with staffers that you place at various agencies, you may require various types of employment practices liability coverage. For example, you might consider securing an insurance package that includes:

  • Protections for staff placed in various workplaces
  • Independent contractors coverage
  • Protections in the event of workplace violence or workplace injury claims
  • Third-party discrimination protections
  • Protections in the event of bullying claims

Your PEO Could Require Both General and Professional Liability Protections

Most, if not all, PEOs could benefit from general and professional liability coverage for both the staff and the management. As a baseline, be sure to include the following in your insurance coverage.

  • General liability coverage
  • Employee benefits liability coverage
  • Auto liability coverage
  • Staffing agency insurance
  • Worldwide professional liability coverage

For any professional employer organization with industry risks to mitigate, having the right PEO insurance in place is essential. Understanding why your PEO could benefit from thorough staffing insurance could help lead your organization to the best insurance package for its needs.