At first, it seemed like a match made in heaven-Tri-City Hardware and a new professional employment organization that opened up in the neighborhood. While the hardware store had been in business for more than 50 years and was firmly established and had even spawned two other locations, it was essentially a small family operation that realized that handling the human resources aspect of the business–what with background checks, drug screens and the like even before the final interview was even conducted-was more than they had the experience and knowledge to take care of efficiently and accurately, nor could they have any hope of affording the significant annual salary that such professionals would require. So, fearing a lawsuit, the store turned to the new firm that specialized in providing workers with expertise in certain fields-in this case, Staffing Solutions. As an expert in the field of human resources, employee benefits, risk management, and payroll administration, Staffing Solutions was a professional employment organization that could help Tri-City grow to the next level by providing human resources professionals, or so they thought. What actually happened was an incident that found Staffing Solutions and the hardware store for which it provided human resources professionals facing incidents that found the firm had purchased PEO insurance.
What the policy covers
This policy offers a variety of coverage for the employees that the insured firm (in this case, Staffing Solutions) places within the premises of its clients-in this case, Tri-City-including employment practices liability, health insurance, workers compensation, unemployment insurance, and a host of other employee benefits and other voluntary insurance protection. Thus, when one of the HR professionals was severely injured on the Tri-City premises, everyone concerned was relieved to know that Staffing Solutions’ policy would pay for the employee’s medical costs (she was hospitalized with a compound fracture in her left leg for weeks), as well as physical therapy and lost wages during the months she was unable to work.
Find out more from your agent
Contact a professional insurance agent to learn more about PEO insurance and how it can provide protection for your company as you provide direction for companies that need the skills and expertise of your employees.