PEO insurance is one phrase covering three quite different things, and a conversation in which the buyer means one and the provider means another is the normal state of this market. The three are health cover for your staff, workers' compensation for the work they do, and employment practices liability cover for the employer.
Health cover
The one most buyers mean. Your employees join the provider's group health arrangements, which is how a small employer reaches rates negotiated across a much larger pool. This is the reason most people are in the conversation at all, and the thing to interrogate is the plan itself and what your staff pay each month, not the administrative fee.
Workers' compensation
Cover for injury arising from the work, placed through the provider's programme and charged as a rate per hundred dollars of payroll by job classification. For an employer in a trade this is frequently the larger number and the more consequential one, because classification decisions drive it and they are made by the provider.
Employment practices liability
Cover for claims about how the employer treated somebody: discrimination, harassment, wrongful dismissal. Some arrangements include a level of it and many do not, and where it is included the limits are often modest. Ask specifically whether it is included, what the limit is, and whether it covers your own conduct or only the provider's, because those are very different products.
Questions people ask about peo insurance meaning
What does PEO insurance mean?
It refers to three different covers: group health for your staff, workers' compensation for the work, and sometimes employment practices liability for the employer. Establish which one a conversation is about.
Is workers' compensation included in a PEO?
In most arrangements yes, placed through the provider's programme with the premium passed through by job classification. Get the classification codes for every role in writing.
Does a PEO cover employment claims?
Sometimes, at modest limits, and often not at all. Ask whether employment practices liability is included, what the limit is, and whether it responds to your own conduct.