PEO stands for Professional Employer Organization, and involves a partnership between a staffing agency and a company. Instead of re-inventing the wheel by going to new staffing agencies every time there is a vacancy or a need for new staff, the human resources department of one company may partner with a staffing firm on a long-term basis. This can work out well if the staffer can provide the company with a steady stream of reliable temporary and long-term workers. However, sometimes things can go wrong in the course of the business relationship, and that is why PEO insurance is necessary.
Good contracts make for good business relationships, because they help each party see what is required and expected from the other. Insurance also creates peace of mind and the knowledge that there is coverage in case of unforeseen circumstances involving staff. You can find various types of PEO insurance, including individual policies and comprehensive coverage. Each party in the PEO partnership can benefit from knowing that they are protected from most types of liability, including injury, loss and wrongful acts. You can also find worker’s compensation insurance and protection against cyber-crime.
Having PEO insurance can make a staffing agency and a company feel more confident that there is a solution if there is loss or damage caused by workers. Having the right policy can make work go more smoothly and make the business relationship more secure.