Running a business involves handling many details. Smaller and even mid-sized companies, especially, may have trouble making sure everything is done correctly. Staffing companies, in particular, must deal with paperwork for numerous people. This is where a PEO for staffing companies may be a smart business decision, but PEOs themselves must also make good company choices.
A professional employer organization, or PEO for short, is a contractor that takes on specific administrative tasks for companies. Sometimes these outsourced specialists are referred to as employee leasing companies. Some of the duties they may assume include:
- Employee benefits
These vital functions in particular point out why a PEO for staffing companies offers particular benefits. However, due to the potential risk associated with these types of duties, PEOs need quality insurance coverage.
PEOs, Risk, and the Staffing Industry
The staffing industry faces specific challenges, including rising administrative costs, increasingly complicated contracts, and a revolving door that makes it challenging to recruit and keep great talent. By outsourcing duties to a PEO, smaller companies as well as their employees benefit.
The increased exposures PEOs take on by performing integral business tasks require specific types of insurance packages. Vital coverage includes E&O insurance, additional specialized liability protection, and general liability options.
A knowledgeable insurance specialist understands the risks PEOs face. They can advise about the best coverage for every situation to make life easier for all.