ESAC's PEO Client Assurance Program is similar to the assurances offered by the
FDIC for the banking industry, the Security Investor Protection Corporation
(SIPC) for the securities industry, and state insurance guaranty associations
for the insurance industry.
The program provides for reimbursement to clients, worksite employees, taxing
authorities, and insurers in the unlikely event of a default by the PEO to pay
wages, payroll taxes, contributions to employee retirement plans, workers'
compensation premiums and group life and health insurance premiums or plan
contributions.*
Assurance is provided through $1 million surety bonds held on behalf of each
ESAC accredited PEO plus a $10 million excess bond covering all program
participants. Bonds are backed by an A-rated national surety bond carrier.
Bonds are held by the Employer Services Trust at
Regions Bank.
*In order for a client of an accredited PEO to be covered by the Client Assurance Program’s surety bonds, the client must have executed a written service contract with the PEO and have been issued a Client Participation Certificate by the PEO or by ESAC.
