What Does Coemployer Mean?

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What does Coemployer mean? Read on to discover the definition & meaning of the term Coemployer - to help you better understand the language used in insurance policies.

Coemployer

Coemployer

In an employee leasing arrangement, refers to either the employee leasing company or the client company. Because both firms essentially share employees, and this creates ambiguity as to who is the statutory employer for the purpose of the provision of workers compensation, numerous jurisdictions have designated the employee leasing company/professional employer organization (PEO) and the client company as coemployers and afforded them both the protection of exclusive remedy when specific statutory requirements are met by the two parties.

We hope the you have a better understanding of the meaning of Coemployer.

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