Life and health insurance agents can tap a large new market of small businesses through professional employer organizations.
PEOs offer a conduit to small businesses eager to provide a selection of worker benefits–many for the first time.
Because PEOs provide services to small businesses to help them manage human resource responsibilities, they give businesses a one-stop source for the management of HR, employee benefits, payroll and workers’ compensation.
They deliver these services by establishing and maintaining an employer relationship with the employees at each business’s worksite. They contractually assume certain employer rights, responsibilities and risks, giving small businesses a way to offer a comprehensive HR package at a lower cost than they could offer themselves. And they relieve the businesses of the burden of establishing an in-house HR and benefits department and negotiating for competitive benefits piecemeal.
Most purchase and deliver these plans through insurance agencies and brokers and administer the benefits for covered workers. Others use relationships with insurance agencies to help create individual programs for member companies.