Professional Employer Organization Insurance Coverage Checklist
The coverages a professional employer organization business may carry — core, prevalent, and situational — why each matters, and the gap most often missed.
Pull out your current policy and check the box next to any coverage you can confirm is already in place — anything unchecked is worth a quick conversation with your advisor. Coverage checklist for professional employer organizations that co-employ client workers. Priorities reflect typical exposure for this class; confirm against your actual client mix and services.
Tick each coverage you can confirm you carry — anything left unticked is a good question for your next policy review.
| Have it? | Coverage | Why this business needs it | Priority |
|---|---|---|---|
| Workers' Compensation | Covers worksite employees across every client — confirm the structure (master, per-client, or client-held) matches each client. | Core | |
| Employment Practices Liability | Co-employment puts the PEO in harassment, discrimination, and wrongful-termination suits brought against clients. | Core | |
| PEO Professional Liability / E&O | Covers client claims over payroll, tax, and benefits errors. | Core | |
| Crime / Fidelity | Covers theft or diversion of payroll and tax funds the PEO holds. | Core | |
| Fiduciary Liability | Covers claims over health and retirement plans the PEO sponsors for worksite employees. | Prevalent | |
| Cyber / Privacy Liability | PEOs hold Social Security numbers and bank details for every worksite employee. | Prevalent | |
| General Liability | Covers the PEO's own office and client visits. | Prevalent | |
| Umbrella / Excess Liability | Adds limits over employer's liability and general liability. | Situational | |
| Third-Party Crime | Covers theft by your own staff from client companies' funds or accounts. | Situational |
The coverage gap most often missed
The gap most often missed by PEOs is employment practices liability that is shared across every client. Many PEO EPL policies give all clients one aggregate limit, use retentions commonly around $35,000 and as high as $75,000, and likely exclude wage-and-hour claims, so one large client loss can exhaust protection for the whole book. Confirm how the limit is shared, whether wage-and-hour defense is included, and whether larger clients should carry their own EPL.
Send us the checklist and we'll review your professional employer organization coverage line by line, then market it across multiple carriers that compete for your account.
Related: Professional Employer Organization (PEO) Insurance · Professional Employer Organization Supplemental (apply) · All coverage checklists
Frequently asked questions
What insurance does a professional employer organization business need?
The core coverages for a professional employer organization business are Workers' Compensation, Employment Practices Liability, PEO Professional Liability / E&O, Crime / Fidelity. This checklist also lists the prevalent and situational coverages worth considering, with a plain-English note on why each matters.
Is this checklist insurance advice?
No. It is a free educational tool to help you have a more informed conversation with a licensed professional. It affords no coverage and is not insurance, legal, or financial advice — only your actual policy language governs what is and isn't covered.
Can Cory Washington & Co. review my professional employer organization coverage?
Yes. Share your checklist and we'll review your program line by line, market your account across multiple carriers, and explain the trade-offs in plain English. Cory Washington & Co. LLC is licensed in all 50 states.
This checklist is a free educational tool from Cory Washington & Co. to help you review your own coverage and have a more informed conversation with a licensed insurance professional. It is general information only — not insurance, legal, or financial advice, and not a recommendation to buy, change, or cancel any policy. Coverage terms, availability, limits, and requirements vary by policy, carrier, and state, and only the language in your actual policy governs what is and isn’t covered. Checking or leaving blank any item above does not indicate that you are adequately insured or under-insured. Using this checklist does not create a client, agency, or fiduciary relationship. Always consult a licensed professional about your specific situation.