Turning Risk Into Reward: The Cyber Opportunity
Our very own, Paul Hughes, authored a cyber article in this month’s PEO Insider. Due to today’s crazy cyber landscape, the article focuses on the responsibility that exists for PEOs to offer cyber to its client companies. Enjoy!…
PEO Insider Magazine - Turning Risk Into Reward: The Cyber Opportunity
By Paul Hughes
The number of devices connected to the internet, currently at 15 billion, is expected to double over the next eight years. The exposure to being an employer is dynamic and untenable for a small employer which is why PEOs are so crucial to businesses. While core PEO responsibilities such as payroll, procurement of workers’ compensation, and human resources are foundational, value propositions to assist employers in addition to these areas are what makes one PEO more attractive than another in the selection process. The biggest problem to solve for your client company? Maybe it’s safety. Usually, the area where they lack the most understanding and support is in cyber defense. Every client of yours is a sitting duck for a hacker and you can help.
Cyber Insurance Market Growth in Direct Written Premiums (“DPW”)
Traditionally, PEO offerings and services provided within the client service agreement (CSA) revolve around responsibilities such as workplace safety, hiring practices, human resources and employment-related insurance offerings such as workers’ compensation, health insurance and 401k. Employment Practices Liability Insurance (EPLI) associated services have grow substantially within the PEO model over the years for instance. An exponential number of client companies are provided EPLI whom either did not have it prior to meeting their PEO, or would never have bought on their own based on cost. While I do not have empirical evidence to back this statement, I believe the pick-up rate for small employers in a PEO model versus traditional to buy EPLI or not is at least three-fold if not more within the PEO community. Deals are won and lost maybe not solely on this offering, but certainly the weighting of it has become heavier as the importance of coverage without an excessive retention is paramount.
Join the Conversation on Linkedin | About PEO Compass
The PEO Compass is a friendly convergence of professionals and friends in the PEO industry sharing insights, ideas and intelligence to make us all better.
All writers specialize in Professional Employer Organization (PEO) business services such as Workers Compensation, Mergers & Acquisitions, Data Management, Employment Practices Liability (EPLI), Cyber Liability Insurance, Health Insurance, Occupational Accident Insurance, Business Insurance, Client Company, Casualty Insurance, Disability Insurance and more.
To contact a PEO expert, please visit Libertate Insurance Services, LLC and RiskMD.