If there is one thing professional employer organizations, or PEOs, have in common is that they are complicated. No two PEOs, which are a lot like staffing organizations on steroids, are quite the same, but they all need to protect both the business and the men and women the business employs. PEO insurance can do that.
The kind of PEO insurance your business needs will depend a lot on client co-employment agreements. Those agreements should outline how the client will protect your employees while they work for the client, as well as specify how the PEO will cover employees during that engagement.
Most Common PEO Insurance Policies
Regardless of client co-payment agreements, most PEOs should engage with an insurance company to decide what basic coverages it should carry. The most obvious policies would protect the PEO from common business liabilities, such as office injuries (workers compensation) or lawsuits filed against the company (professional liability or errors and omissions insurance).
How much a solid PEO insurance policy will cost a company depends solely on the type of insurance the organization requires and the risk the carrier underwrites with regard to that policy. Spend time with an insurance agent to discuss what coverage you require and how it can fit into your budget.