Liability Insurance for PEOs

Oftentimes, small companies don’t have the internal resources to easily distribute payroll and handle complex employee relations, so they hire a professional employer organization to administer those operations. Because of the shared responsibilities between the PEO and the company they serve, the unique liability risks that PEOs face must be carefully addressed.

Liability Insurance Necessary for Your PEO

The type of PEO insurance you need will depend in part on the type of service you provide, so it’s critical to discuss your options with your insurance agent. In addition to general liability and commercial property coverage, professional liability insurance is a must to protect you when claims are filed for professional negligence or mistakes.

Even though professional liability insurance must be tailored to fit your organization’s specific needs, the following circumstances should be included in your coverage:

  • Omissions
  • Errors, both alleged and actual
  • Duty breaches
  • Unkept promises or misleading declarations
  • Perceived professional negligence

In addition to protecting your business venture, you must include coverage for the employees who work for you. Individuals can sometimes be sued for errors and omissions, so make sure your workers are protected from unwanted claims.

Your professional employer organization has unique needs. Make sure your insurance agent has the knowledge and expertise to offer the best coverage to protect your investment.