Small businesses make up nearly all businesses in the US with close to half the employees. Small business owners don’t always have the manpower to handle important specific jobs such as human resources and taxes. A PEO steps in and fills these services. PEO insurance covers your PEO while you provide the professional resources small business owners need.
Even though your employees work for other clients, they mainly work for your PEO. As an employer, your business needs a workers compensation policy to cover on-the-job injuries and illnesses.
The broad coverage of a commercial general liability policy is a staple for most business owners. An agent can go over the specific coverage options and any additional riders your business needs..
Providing professional services to clients puts the PEO at risk for a lawsuit. Claims can arise from breach of duty, professional negligence, alleged or actual errors, misleading statements and omissions of the employee to the client company.
Protecting your business’ property from unfortunate events such as vandalism and fire is the reason every PEO needs commercial property insurance. Even if the building is unowned by the PEO, replacing equipment and supplies is expensive.
A PEO insurance package can include more than the policies listed above for specific industries. These are the minimum your company should consider when operating.