Running a professional employer organization, or PEO puts you squarely in the middle of assisting businesses with their everyday services. Unfortunately, what many PEOs may not realize is that assisting clients with payroll, HR services, regulation compliance and more can leave them vulnerable to legal issues. To protect your PEO from possible lawsuits, here are the top reasons to get specialized insurance.
Lack of Insurance May Open the Door To More Suits
The unfortunate truth is that when you don’t have the right insurance in place, you may be leaving the door open to a number of different lawsuits. The best way to protect your PEO is by getting comprehensive coverage that includes:
- General liability protection with some worldwide coverage
- Errors and omissions insurance
- Property and auto insurance where relevant
The Exact Services You Provide Your Clients Will Impact the Coverage You Need
Of course, the exact type of coverage you end up getting will depend on the sort of assistance you provide to your clients. For instance, a PEO that specializes in HR assistance may have slightly different needs than one that is largely dedicated to administrative tax help.
Though they typically provide a wide range of assistance services for business clients, PEOs may also be leaving themselves vulnerable to legal troubles without proper insurance. If you run a professional employer organization, carefully consider these reasons to look into dedicated insurance today.