With everything on your plate, your organization easily gets bogged down by essential, but time-consuming tasks like payroll, employee paperwork, and benefits management. A Professional Employer Organization (PEO), contracts with your organization to eliminate some of the stresses that come from managing HR-related tasks.
As a co-employer, a PEO takes on certain obligations specific to you as an employer, which are typically outlined in a service agreement. This gives the PEO authority to handle functions like tax remittance, payroll, and benefits and essentially, act as an employer for these singular purposes. However, the difference between a PEO and a payroll company is that it can take greater responsibility.
Why You Need PEO Insurance
Although working with a PEO may be beneficial for your business, you need to protect your organization from potential liability caused by this partnership. PEO insurance is designed to protect your organization from any oversights or errors made by your PEO, and is a valuable asset to your insurance portfolio.
Whether you currently contract with a PEO or are thinking about forming a partnership with one, it is better to acquire PEO insurance sooner rather than later. An insurance professional in your area can help you determine which policy is right for you and help you move forward with the coverage process.