Every professional employer organization (PEO) works within a challenging gray area. It’s one in which the responsibility for the health and well-being of an employee could be that of the PEO or that of the client it works for. The right PEO insurance can help limit that gray area.

Every PEO should work with its insurer to create the perfect policy for its particular situation. All of those policies, however, should include these three coverages:

General Liability Insurance

If a client or employee decides you were negligent and sues you, general liability insurance will cover legal bills and pay for any damages if you are, indeed, at fault.

Property Insurance

If fire or flood damages your property, this coverage will help you pay for repairs. It also covers the contents inside the building. That includes furniture, technology, office supplies and more.

Errors and Omissions Insurance

There’s always the chance a client will believe you broke your contract or were negligent in some other way. Errors and omissions insurance will pay for both your legal bills and any damages awarded by a judge.

There are many more coverages that you should consider adding to your PEO insurance policy, like workers compensation. Work with your insurer to pick what’s right for you.