PEO’s Insurance, or Professional Employer Organizations, offer an affordable way to provide quality health insurance coverage for your employees. They also provide a variety of benefits, including online payroll reports and discount programs.
PEO’s Insurance is generally available through a small number of carriers. Because of the cost and the limitations of this type of insurance, it is important to research and evaluate the options.
PEO’s Insurance can help protect your business from lawsuits, employment discrimination and harassment, wrongful termination, and other HR issues. The policy can also protect your employees from retaliation and discrimination.
PEO’s Insurance policies typically include two separate limits. These limits are referred to as the company coverage limit and the aggregate limit. Each of these represents the maximum amount that the insurer will pay out for claims against the firm, and for all employee claims across all client companies.
One of the key advantages of using a PEO is that the insurer considers them less risky than individual businesses. However, they still have a statutory obligation to provide workers compensation coverage.
A specialized risk management and insurance broker can assist your business in identifying gaps in coverage and developing a plan that addresses those gaps. By securing an insurance carrier that has high ratings and an adequate risk management program, you can protect your employees and your business.
Before engaging in a PEO relationship, ensure that your company is fully insured. Your PEO should be able to provide you with a copy of your company’s workers’ compensation policy. Also, check to see if your policy covers contractors and independent contractors.