Professional Employers Organizations (PEOs) PEOs are organizations that manage and administer the human resources functions of their clients by contractually assuming substantial employer rights and responsibilities. They establish and maintain the employer relationship with the workers assigned to them. The types of workers, lengths of contracts, and the contractual obligations are important factors carriers consider when underwriting a specific risk.
Insurance agents and/or carriers develop these tailor-made programs to respond to the insurance needs of a specific franchisor or association of franchisees. The franchise’s group bargaining power provides the leverage to obtain better coverage at more reasonable prices. These programs also assure the franchisor that contractual coverages are available to the franchisees.
Association-sponsored mass marketing programs are tailor-made programs that an agent, broker, managing general agent, or insurance carrier develops to respond to the insurance needs of a specific trade or professional association. The association’s group bargaining power provides the leverage to obtain better coverage at more reasonable prices. These programs also contribute to the association’s continuity by providing important member benefits.