A: Like other employers, a PEO may sponsor employee benefit plans for its worksite employees. Such benefits may be mandated by law, such as workers' compensation and unemployment benefits. Or they may be voluntary benefits that will help attract and retain quality employees, such as a benefits package. PEOs as employers may sponsor or acquire programs for their employees.

As such, PEOs are consumers of insurance and procure these benefits from licensed insurance agents and authorized insurers.