A professional employer organization, or PEO, offers a service an employer can use to outsource certain employee management tasks. These include recruiting, payroll, employee benefits, training and development. The PEO also becomes the employer of record for tax and insurance purposes, a practice known as co-employment. Coverage for PEOs is extended under Professional Liability Insurance (Errors & Omissions).

How Staffing Firms Fit Into the Picture

Staffing firms recruit employees for specific positions that need to be filled within their client companies. In a PEO arrangement, the PEO then assumes employer responsibility for the taxes, benefit plans and other human resources programs for these employees. PEO insurance provides coverage for the services they render to the clients and for defending claims that arise out of the actions or activities of PEO workers.

Coverage Begins With Staffing Firm Protection

The professional liability policy protects the recruiting agency from allegations of financial loss relative to the placement of contract workers and the services they provide. Both blue- and white-collar workers are covered. Included are professionals such as engineers, architects, accountants, attorneys and IT experts. PEO insurance is designed with the diversity of the staffing industry in mind and includes coverage for temporary employees. Coverage is also available for claims brought anywhere in the world.

Building the right PEO insurance package is vital to the protection of any professional employer organization. Of course, what is right often differs from business to business, depending on the industry they are involved with and the unique problems they face. Knowing the needs and goals of the company is key to finding the best insurance provider. Once you find the right one, they will be able to help you along the way and guide you toward the best policies.

Good PEO insurance should include everything you need, and nothing you don’t. When your provider understands your most important concerns, this goal can be easy to achieve. For instance, some are able to provide coverage to firms that deal exclusively in the medical field. They have the experience needed to provide solutions for these problems. Other policies provide specialized coverage for IT professionals, protecting them on issues like copyright and trademark, with no coverage restrictions for network security violations. This can also protect the client’s electronic data in case it is damage. No matter what industry you work in, the right coverage is out there.

When your business is covered head to toe in strong protection, it is ready to be successful in the industry, whatever that may be. The best provider for you is out there, waiting to provide the advice and assistance you need. Look into this great resource today and prepare your company for any challenge.