Like all businesses, a professional employer organization or PEO needs insurance coverage in order to safely maintain their business. PEO insurance acts not only as a potential safeguard, but it actively helps agencies deal with intricate legalities with little to no loss. Being prepared for any and all incidents is an effective way of protecting your PEO. A few reasons as to why PEO insurance is necessary include preventing financial loss, maintaining your public reputation and allowing your business to continue operating in the industry.
Financial loss can occur from just about anything, ranging from bodily harm or property damage. Whether your business is liable for damages, either legal or physical, insurance can help buffer those losses. Without insurance, you can lose critical amounts of money and end up having to close your employment agency. Your business’s reputation can be harmed as well, especially in the cases of online security breaches or mishandling of private information. If your agency cannot offer adequate coverage for future clients and contract workers, then they have no incentive to choose your agency to help represent them. Both of these possibilities can end up closing your agency down for good, either from lack of funds or damaged reputation.
Understanding just what is at stake means understanding the preparations needed to prevent disasters from occurring. Your PEO’s reputation and finances are at risk and require sufficient coverage to help maintain business operations in the future.