PEO Group Health Insurance: Will My Company’s Data Be Secure With a PEO?

Data security is a growing issue for many small business owners. While headlines focus on data leaks in large organizations, cyber security statistics show that up to 43% of all cyber-attacks are committed against small businesses. That’s why cyber security is a must for your customers and employees.

If you are looking for a PEO outsourcing solution, you may be concerned about how secure your company’s data is for your new partner. This security issue is a major consideration for small business owners working with PEOs, as organizations are responsible for most of their employees’ personal information. PEO may be protected by your personal data. However, before you agree to participate in the PEO, you should know what your new privacy partner has.

Determining the Quality of Your PEO’s Cybersecurity

Among the many factors to be sought at PEO is a strong cyber security infrastructure. Your PEO has access to important pieces of your employees’ personal information, including birth numbers, home addresses, birth dates, and more. If PEOs manage benefits for your employees, they may have access to HIPAA-protected data.

Ensuring that your PEO handles this information properly is essential to your peace of mind and can help address potential liability concerns.

Understand What Laws Govern PEOs’ Data Policies for Clients

There is no universal privacy policy in the United States today. In contrast, data protection laws vary at the federal and state levels and may vary by industry.

PEOs can have clients in many countries. As such, they must have security measures in place that meet these different standards. Ask your PEO colleagues about their customer base and what privacy laws apply to them.

Assess Their Internal Data Security Requirements

You need to evaluate your PEO partner’s internal security policy. Although no system is 100% fail-safe, there are many steps you can take to prevent internal and external data leaks.

Ask your PEO partner about:

  • Your employee password security needs
  • Educate employees about data breaches and data security best practices
  • Your written information security program
  • Measures are taken to prevent successful phishing and other malicious attacks

You need to feel that everyone working on your PEO understands the need for best data security practices.

Meet With Their IT Department

When you meet your new PEO team, make sure you also meet members of its IT department. Strict cyber security policies require compliance across the organization, but your IT department may be in a better position to address specific concerns regarding the management and processing of that department’s personal data.

Improve Your Own Cybersecurity

While it is important that you feel secure with the PEO’s cybersecurity infrastructure, it is also important to ensure the privacy of your employees. A robust cyber security program at your PEO will not help your employees if your data can be compromised by you.

The Federal Trade Commission (FTC) recommends that all companies have a robust data security plan. A robust data security plan should include:

  • Keep only the personal information necessary for your business
  • Dispose of confidential information safely as soon as you need it
  • Maintain current physical security, electronic security, and employee training on data security policies and practices, and oversee security policies for contractors
  • Track what personal information you access, both physically and digitally
  • Create a security plan

Work With a PEO Broker to Help Secure Your Data

Finding the right PEO includes providing the services your business needs, pricing options that fit your budget, and the ability to keep your data safe. The reduction could be an hourly project for an uncertain small business owner.

Fortunately, you don’t have to work alone to find the right PEO for your business. NetPEO’s PEPE Broker is here to help you with your search. Through our network of trusted suppliers, we can help you find a PEO that is sure to provide you with the service you need.

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