Do you own a staffing agency? Do you have a directors and officers policy as part of your PEO insurance? If not, you could be missing vital protection in case a third party was to name you personally in a lawsuit against your agency.
Why It May Be Necessary
Numerous people could decide to bring accusations against your agency, including current or former employees, creditors, competitors, shareholders and more. Agencies and its directs may be accused of misusing company funds, a lack of corporate governance, fraud or another issue. The policy helps to protect you from these allegations.
What It Covers
The directors and officers policy in your PEO insurance covers several situations. It may pay for your legal fees as well as any settlements. If the agency is being falsely accused, it may also cover investigative services. Sometimes the company is protected if it is also named in a suit.
Who Buys It
Typically, the company itself purchases the policy even though it is technically for individuals. This is because good directors and officers coverage may entice people to join the company.
When purchasing any policy for your PEO insurance plan, research to ensure it is one you truly need. Your needs will depend on the size of your staffing agency and the types of companies you provide employees to.