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Insuring Temporary and Contracted Employees

Requirements for classification, insurance and benefits seem to constantly be changing for professional employer organizations. If you manage a PEO, you already know that there are a number of factors that make your line of business and role as an employer unique. Specialized amenities such as PEO insurance can make things easier, but insuring your employees is still likely to be one of the biggest challenges you face. There are a number of things to keep in mind when you are considering coverage, including:

  • Employee classification: To accurately classify your employee as either part- or full-time, you should track all hours worked and calculate how many they work on average. If your employee qualifies for full-time status, they may also be entitled to insurance.
  • Qualification and status: Whether or not an employee qualifies for coverage elsewhere typically does not affect whether or not you are obligated to furnish it, but it is still important to take into consideration. Employees will likely report whether or not they were offered insurance if they ultimately seek it out elsewhere.
  • Contract term: The period of time your employee is contracted for may have an impact on whether or not they are entitled to insurance coverage. In most states, there are limits on the employment period required for insurance coverage.


PEO insurance can provide coverage for liability or employee coverage needs. Finding a policy that meets your needs is the best way to protect against potential damages.