PEO insurance is, in some ways, almost identical to the coverage necessary in any other professional organization. However, some of the realities of the coworking business model require the staffing company to take on some responsibilities that might seem like they fall upon the client. Whether you’re starting up a new PEO or you are reviewing your insurance options, here are a few finer points about the types or risks you’ll face.
Your staffers are required to do their jobs using equipment you haven’t approved and in facilities you don’t control. In fact, your clients have the final say on these subjects. You are still required to provide workers compensation insurance for your employees and you’re likely to assume liability for any injuries. Forming good partnerships with safe companies is a great step towards reducing this risk, but that doesn’t prevent the possibility of injury entirely. Good PEO insurance can keep you in business, should the unfortunate occur.
Even if you vet your employees to the best of your ability, some exaggerations can slip through the cracks. If these lead to losses for your clients, you might be held accountable. Cover this possibility with specific PEO coverage and avoid unnecessary hardship for yourself or your clients.
Whether it’s dishonest employees or unsafe client working conditions, you’re exposed to some unique risks in the PEO business. Get the peace of mind targeted coverage affords and focus on growing your operations.