As a professional employer organization (PEO), you offer a needed service to your clients. When they are able to outsource workers’ comp, payroll, training and employee benefits, it takes the pressure off of their company. The pressure, however, is then put on yours. Because of the risks you face, you need a proper PEO insurance policy. The following are some ways in which a policy will benefit your company:
- Legal Fees – If you are involved in a lawsuit because a client believes you did not provide them with the services they requested, your policy can help to cover the legal fees. This could include filing fees, attorney fees and a variety of other expenses you were not originally planning on.
- Settlement Fees – No matter the type of lawsuit, it’s possible the settlement could point in favor of your client. In such a case, you will often be responsible to pay a settlement to the client. Proper insurance coverage will step in to help you make this payment.
- Repair Costs – If your property was damaged due to vandalism or fire, a policy with the right coverage will help you afford the repairs. This could be essential to keeping your business running after unforeseen circumstances.
As you can see, there are some major benefits you can experience with the right PEO insurance policy. Contact your agent to learn more about the options you have and get covered today.
When it comes to shopping around for insurance in VA it can be a little stressful. There are so many coverage options and insurance agencies willing to help businesses with their needs. It can be hard to know where to start. With these three tips on what to look for, however, you can find the right agency for you in no time.
Look for Experience
Don’t settle for someone that hasn’t been at the top of their game for years. Some insurance agencies have been leading the way for many years. You don’t have to settle for anyone that isn’t experienced or specialized in your particular business needs.
Look for a Fast Quote
You don’t have time to wait around when you have a business to run. Finding insurance in VA is imperative to the life of your company. You’re not going to want to waste your time waiting on a quote when you could still be looking. Make sure that they offer you a quote quickly.
Look for Versatility
A firm that has many different specialties can help you in all aspects of your life. It’s good to be able to find a solution to all of your insurance needs in one place. If you’re looking for more than insurance for your business, then being able to find it at one firm can be convenient and beneficial.
Insurance shopping can be overwhelming. However, when you know what you’re looking for it can narrow down the search quickly.
PEO is the acronym for Professional Employer Organizations. This is a new and growing field that is becoming more prominent as many businesses look to cut costs by outsourcing human resources and staffing responsibilities. This co-employment with the staffing industry is set up to help them protect their assets and manage their risk exposures, thus setting up a situation where PEO insurance can be an important asset for the staffing company.
Especially for small to midsize organizations, this relationship can provide administrative help to free up your organization to focus their daily activities toward building the business. PEO’s normally do not supply labor; however, they provide benefits and services to both the employees and the employer. They can offer services such as management of:
- human resources
- employee benefits
- workers compensation
Once you set up a standard PEO, you still retain day-to-day control in the management of your employees. Your provider handles the benefits administration and HR management, freeing up your time and energy so they can be directed toward the building up of your business.
As this trend grows, clients may feel it is important to protect themselves and their company from growing risk exposures. Unique insurance solutions, such as PEO insurance, can provide this peace of mind for staffing employers and their temporary and permanent employees. This new and innovative insurance can help provide the extra protection needed for a company in a demanding field.
An important part of most businesses is hiring employees to help you help your customers and hopefully turn a profit. When the business grows large enough, it may become necessary to put together a human resources department to handle the hiring of customers, as well as management of payroll and benefits. When a business decides to use a professional employer organization (PEO), the duties of human resources is basically outsourced to another company. Even though it is another company that is handling the HR part of your business, you still should consider PEO insurance for the shared risks you now have.
A Separate-Yet-Shared Organization
When you hire a PEO, a relationship of co-employment begins. Even though they are a separate entity, they are now performing actions somewhat under the umbrella of your business. Thus, the actions of the employees of the PEO are a reflection of your business, too.
Although you might have an insurance policy that helps to cover the costs in case the actions of your employees somehow lead to a lawsuit, the PEO you hire may not necessarily fall under that same policy. The liabilities are separate, yet you can still be held liable for the actions of your PEO. As such, it is imperative that you have an insurance policy to cover you in the event of a lawsuit stemming from the actions of your PEO.
PEO insurance is necessary because although you are outsourcing your HR department, you are still responsible for the actions they make in your business’ name. Protect yourself today with the right coverage.