NAICS UNIVERSITY · Free research for insurance agents
Professional Employer Organizations
NAICS 561330 · United States · 2022 edition
This industry comprises establishments primarily engaged in providing human resources and human resource management services to client businesses and households. Establishments in this industry operate in a co- employment relationship with client businesses or organizations and are specialized in performing a wide range of human resource and personnel management duties, such as payroll, payroll tax, benefits administration, workers' compensation, unemployment, and human resource administration. Professional employer organizations (PEOs) are responsible for payroll, including withholding and remitting employment-related taxes, for some or all of the employees of their clients, and also serve as the employer of those employees for benefits and related purposes.
Start with the work promised to the client.
For Professional Employer Organizations, clarify the services, contracts and consequences of an error. Review employer practices liability, workers' compensation, fiduciary liability. Confirm which professional activities and additional services the proposed coverage actually addresses.
Questions to ask
- How many worksite employees are currently under co-employment arrangements, and across how many client businesses?
- What industries are represented in the client roster, and is there a concentration in higher-hazard trades or health care?
- Does the PEO sponsor a master workers' compensation program, or are clients required to carry their own coverage?
- In which states does the PEO operate, and is it licensed or registered as a PEO in each of those states?
- What benefit plans are administered on behalf of worksite employees, and what are the plan asset values?
- For Professional Employer Organizations, what should the underwriter know about client roster heavily weighted toward higher-hazard industries such as roofing, demolition, or heavy manufacturing?
- For Professional Employer Organizations, what should the underwriter know about prior epli or workers' compensation losses of meaningful frequency or severity across the worksite employee population?
- For Professional Employer Organizations, what should the underwriter know about multi-state operations with inconsistent hr compliance or licensing status?
Activities described by this code
Other activities to examine
- Supplying their own employees for limited periods of time to supplement the working force of a client's business: 561320 — Temporary Help Services;
- Listing employment vacancies and referring or placing applicants for employment: 561311 — Employment Placement Agencies
Census classification reference
For educational purposes only. AI-generated insurance research and automated logic can contain errors. Independently verify classification and coverage decisions.
Compare another operationInsurance operations research — draft
Professional employer organizations enter into co-employment arrangements with client businesses, assuming responsibility for payroll processing, payroll tax remittance, benefits administration, and often workers' compensation coverage for the client's workforce. The PEO is technically the employer of record for those worksite employees, meaning its own insurance programs typically wrap around a diverse portfolio of client industries and employee populations.
Questions to investigate
- How many worksite employees are currently under co-employment arrangements, and across how many client businesses?
- What industries are represented in the client roster, and is there a concentration in higher-hazard trades or health care?
- Does the PEO sponsor a master workers' compensation program, or are clients required to carry their own coverage?
- In which states does the PEO operate, and is it licensed or registered as a PEO in each of those states?
This insurance research was generated in April 2026. It has not received a complete human review. The October 12, 2026 audit checked codes and titles only, not descriptions or coverage assertions.