When you or your company has a large amount of employees working within the organization, there are many risks that are involved with running the business. Employees are an important part of any business, they are vital to carrying out the functions and duties of a group and moving the wheels of progress forward. However, there are many different forms of liability that come with the hiring of individuals. This is especially true for one type of organization in particular A professional employer organization also known as a PEO requires a wide array of insurance policies in order to protect the employees they are technically responsible for and the employers who hire them. There are many people who may be asking the question, what exactly is a PEO, and what is their function?
What is a PEO?
A professional employment organization is a company to which employers will essentially outsource certain functions of managing and arranging employees and their respective benefits. When a company employes the services of a PEO, they hand over the responsibility of arranging benefits, payroll, worker’s compensation, safety management, and development to the third party organization. This yields many benefits for employers and can be vital to the creation of a sustainable business model. However, for a PEO to take on such responsibility, they must be properly equipped with an adequate protection package. This is where PEO Insurance comes into play. A PEO insurance package will generally include several different policies whose purpose it is to cover many different areas of liability. Managing employees is a serious business, and there are numerous risks involved with it. That is why there are several insurance providers who specialize solely in providing PEO companies with the protection they need to sustain loss and damage.