As state, national, and international regulations continue to evolve and expand, modern businesses are beginning to look to professional employer organizations (PEOs) to streamline ongoing employment operations. PEO services cover a wide range of administrative activities, including managing health and unemployment benefits, payroll issues, and workers’ compensation claims.
Professional employer organizations have increasingly become critical human resource allies for companies in a variety of industries, helping to relieve the growing burden of legal employment requirements by:
- Providing human resource expertise and experience
- Handling complex employment administration tasks
- Enabling access to competitive employee benefits packages
- Offering productivity and profitability consultation
With the burden of employment law and regulation growing each year, PEOs are quickly becoming major management partners for businesses across the country.
While PEOs allow companies to better focus on their business goals and revenue production, this emerging industry is also subject to unique liabilities. As a result, many insurance providers now offer specialized PEO insurance policies that can help to protect company clients as well as the PEO businesses they rely on.
By taking on an employer relationship with client employees, PEOs also assume many of the rights, responsibilities, and risks associated with traditional businesses. This makes is crucial that professional employer organizations and their client companies look to PEO insurance policies to protect their interests and maintain a successful partnership.