With the growing number of small businesses and startups in the global marketplace, professional employment organizations are becoming increasingly popular. If you administer a PEO, you help companies better manage employment tasks. You also expose your organization to legal liability that other types of businesses never face. With the right PEO insurance plan, you protect your firm from costly lawsuits and damaging judgments.
Acknowledging Legal Pitfalls
PEOs provide a variety of services to their clients. Whether your organization has only a few or a smorgasbord of offerings, you must acknowledge the legal pitfalls associated with a PEO-client relationship. Most importantly, you must recognize that your organization likely owes a fiduciary duty to your clients.
As such, you may want to invest in PEO insurance that includes the following:
- General liability coverage
- Breach of fiduciary duty insurance
- Professional liability protection
- Director and officer liability insurance
Of course, you likely want your insurance package to protect your office and staff. Including property insurance, automobile coverage, and workers’ compensation insurance may be necessary. Instead of leaving the success of your PEO to chance, work with an experienced agent to tailor a comprehensive PEO insurance package to your organization’s needs.
With a bit of effort, you can likely achieve the peace of mind you need to provide exemplary service to your company clients.