A professional employer organization (PEO) is an efficient and productive way for businesses to outsource some of the most complex and time consuming aspects of employment, such as tax compliance and workers’ compensation claims. Because of the demanding and tedious nature of the business PEOs conduct, the likelihood of errors and omissions perpetually exists. No matter how thorough a PEO is, it will never be able to eliminate entirely the chance of liability. As PEOs are becoming more common, so is the need for PEOs to protect themselves from the risks of conducting business. To help reduce the risks and protect their assets, more and more companies are picking up PEO insurance. Policies exist to protect a PEO in the event that a client initiates legal action against the PEO for mistakes made by its workers that caused monetary losses and other damages for the client.
Get Coverage For a Variety of Liabilities
In general, insurance coverage can be written in a manner that covers a wide variety of professional liabilities, including damage to your clients’ electronic data and intellectual property. Deductibles, inclusions, and policy limits can be tailored to suit your business’s needs. If you engage in international business, consider an insurance policy that will offer you coverage against claims made from all across the globe. Check with your insurance company to find out what type of PEO insurance is right for your firm.