Professional employer organizations are businesses structured in a very complex way. Still, recent studies have shown that a good chunk of businesses rely on a PEO to handle HR duties. Due to the nature of a PEO’s work, it makes sense that insurance needs can get a bit complicated. If you aren’t diligent about selecting the right policy for the needs of your company, then you are going to be making your life a lot more difficult than it needs to be. Picking the right coverage is easy with a little forethought.
Insurance Takes Different Forms
The first point to understand about PEO insurance is that it is not going to look the same for all organizations. When a business works with a professional employer organization, the employees of the company become employees of the employment organization. This means that you need to understand which entity is responsible for what areas of insurance. Additionally, wage disputes and other common claims are commonplace and require a policy that protects all involved parties. When selecting insurance, consider points surrounding:
- Common HR claims like wage disputes and time issues
- Workers’ compensation coverage
- Interpersonal problems with the staff
Put Thought Into the Process
Though it can be complex, the insurance needs of a professional employer organization are not impossible to decipher. As long as you give yourself a chance to understand the basics, you’ll be ready to tackle whatever comes your way.