§ 27-16-7-4 — Responsibilities of clients, PEOs, and covered employees

Indiana § 27-16-7-4

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 16: PROFESSIONAL EMPLOYER ORGANIZATIONS
• Ch. 7: General Requirements and Provisions

Text

(a) Except as expressly provided by the
professional employer agreement:
(1) a client:
(A) is solely responsible for:
(i) the quality, adequacy, or safety of goods or services
produced or sold in the client's business;
(ii) directing, supervising, training, and controlling the work
of a covered employee with respect to the business activities
of the client; and
(iii) the acts, errors, or omissions of a covered employee with
respect to activities described in item (ii); and
(B) is not liable for the acts, errors, or omissions of:
(i) the PEO; or
(ii) a covered employee of the client and a PEO when the
covered employee is acting under the express direction and
control of the PEO.
(2) A PEO is not liable for the acts, errors, or omissions of a client
or a covered employee of the client when the covered employee
is acting under the express direction and control of the client.
(3) A covered employee is not, solely as the result of being a
covered employee of a PEO, an employee of the PEO for purposes
of:
(A) general liability insurance;
(B) fidelity bonds;
(C) surety bonds;
(D) employer's liability that is not covered by worker's
compensation; or
(E) liquor liability insurance;
carried by the PEO unless the covered employee is specified as an
employee of the PEO by specific reference in the professional
employer agreement and any applicable prearranged employment
contract, insurance contract, or bond.
(b) This section does not limit:
(1) a contractual liability or obligation specified in a professional
employer agreement; or
(2) the liabilities and obligations of a PEO or client as specified
in this article.

Legislative History

As added by P.L.245-2005, SEC.7.