PEOs... Why Become Accredited

Client Assurance Program

PEO AssuranceAccredited PEOs are monitored on an ongoing basis to verify their adherence to ESAC’s financial, ethical and operational standards. In addition to this accreditation monitoring process, ESAC’s Client Assurance Program also backs an accredited PEO's performance of key employer responsibilities with millions of dollars of bonding.

The mission of ESAC's Client Assurance Program is similar to that of 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.

This financial assurance consists of:

  • Reimbursement to the accredited PEO’s 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.
  • Over $15 million in coverage consisting of individual surety bonds held on behalf of each ESAC accredited PEO, plus a $15 million excess bond covering all program participants. Bonds are backed by an A-rated national surety bond carrier and are held in Trust at a major national bank.