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Solutions / PEO Exit Strategies

PEO Exit Strategies 


Thinking beyond PEOs to reliable alternative solutions 

Have you partnered with Professional Employer Organizations (PEOs) to handle your employee benefits, payroll, and other HR functions, but no longer think your arrangement is working? That’s where we can help. Our team of benefits advisors will provide careful planning and guidance to help you evaluate and, if necessary, transition from your existing PEO to a custom solution that allows you to manage benefits on your own. 


Transitioning efficiently and successfully

By putting our established process in place, you’ll not only confirm your readiness and feasibility to leave your PEO but it can also help ensure a smooth and successful exit. From validating your decision to leave, to outlining how to fill gaps in your operation, we’ll help you navigate the stages in the process to ensure you’re staying on track and meeting important deadlines.

Stage 1: Validate that leaving makes financial sense. 

We provide a detailed analysis of the expenses that you pay your PEO, which sometimes are not readily transparent, and compare those costs against the potential investment required to establish and maintain an internal HR team. Then, we outline what costs you will assume once you do leave. 

Stage 2: Determine how to fill operational gaps if/when you leave. 

Stage 3: Follow a detailed timeline. 

Since it typically takes about six months to unwind PEO arrangements, our team will work with you to develop and manage a realistic implementation schedule with completion dates for milestones, such as notice periods, data migration, federal and state tax filings/setups, system integration, open enrollment for new benefits, staff training, and employee communications. 


Deciding to make a change with confidence

As your business expands, your needs can change. And that may force you to reevaluate whether you still need the support and services of a PEO. Fortunately, our benefits advisors can help you consider why and when you may want to move on from your PEO. 

Is your organization growing?

A PEO is typically designed to aid companies with 5-50 employees. If your business starts to grow beyond that, (e.g., 85-100 employees), you may be able to get comparable benefits, including workers’ compensation and 401(k) plans, on your own.Some key areas of focus include: 

Target Company Audits 

Our target company insurance audits aim to identify material weaknesses in coverage, broaden program design, and decrease cost of risk for portfolio companies – our track record shows these outcomes. Risk management and insurance are tools to protect assets under management. With our insurance auditing process, you’ll be able to identify and respond to material weaknesses in coverage design that equate to increased cost of risk.  

Litigation Trends & Limit Analysis 

By leveraging the relationships we’ve cultivated with our insurance partners and the aggregated data intelligence from across our large client base, we have a panoramic view of claims sources and settlement data. This proprietary information is extremely valuable for risk management benchmarking, and can help you build a best-in-class risk mitigation and insurance strategy. 

Insurance Program Solutions 

After conducting a stringent due diligence process, insurance audits, contract review, and a benchmarking analysis, we’ll provide data-informed recommendations about the types of coverage you need and the appropriate limits. We take the complexities out of the insurance purchasing and procurement process and can help provide superior insurance protection for both buyers and target companies.  

Transaction Liability Specialization 

Optimize your M&A deal with transactional risk insurance – a pivotal tool in addressing and mitigating potential risks associated with the deal. By securing these key coverages, you can remain focused on the intricacies of your business deals, navigating all stages with confidence and minimizing concerns about possible disruptions. Our dedicated team of transaction liability experts can help negotiate and place policies, like representations and warranty, tax liability, and other unique deal-specific insurance policies. 

Claims Support 

We’ll always prioritize your best interests and advocate for you in claims scenarios. With our technical prowess, we’re able to simplify steps, such as filing claims and analyzing coverage positions. You can count on our in-house claims team to provide prompt intervention and clear communication. We’ll assist with claims advocacy and review, as well as recommend loss control strategies that can help prevent similar claims scenarios from reoccurring. 


Ready to move on from your PEO?

To quickly get an idea for what your probability for success is after exiting your PEO, take our short quiz now.


Stay in the know

Our experts monitor the employee benefits space and compliance updates to provide meaningful insights and help break down what you need to know, potential impacts, and how you should respond. 

Open the door to possibilities 

When you decide to partner with us, you choose to deliver on your commitment to your employees with solutions as unique as they are.