Tuesday, July 26, 2011

Fake and Fraudulent PEO's: Part I

Currently, 60% of all Professional Employer Organizations (PEOs) in business in the state of California are not legitimate. This bad majority likes to call them selves “Staffing Companies”. These organizations pose and operate like a PEO on the outside to their customers, but inside they pose as a Temporary Staffing Company to their insurance company. 

You are probably wondering, "Why would this affect me?". Working with these types of staffing companies can put your business at risk by leaving you responsible for a claim because of their insufficient insurance coverage. Most staffing companies are not educated with the insurance industry and don’t understand the potential danger that they expose their customers to. 

Before considering a quote from a PEO, make sure to contact an experienced PEO insurance broker first who can refer you to a reliable PEO or do research on a PEO you may already have in mind.

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