Administaff is a payroll services company. They will administer your company’s payroll so you don’t have to. It’s a fairly common practice with businesses in the United States. However, Administaff – or some shady employees – seem to be branching out into other areas – in particular, offering insurance to those who sign up for their payroll services. The practice has left consumers confused and with unpaid insurance claims.

Case in point

A husband and wife started a small company. They were approached by Administaff to provide them with payroll services and signed up. The Administaff salesperson also offered the couple something else – group health insurance. They were told that the insurance was through Pacific Care, but when tragedy struck, the couple ended up with nearly $200,000 of unpaid medical claims because the policy didn’t provide the coverage they were promised.

The policy itself only listed the couple as part of this “group” insurance. Not much of a “group” at all. Administaff’s website says that a co-employment relationship will ensue. In particular, their site, says:

Administaff delivers its personnel management services by entering into a co-employment relationship with a client company and the client company’s existing employees, including the business owner.Under this arrangement, Administaff assumes or shares many of the responsibilities of being an employer.

It’s a strange setup to say the least and leaves many questions unanswered, such as – Should Administaff be part of this couple’s group insurance? Is the Employee Retirement Income Security Act (ERISA) implicated? Were the Administaff salespeople licensed to sell insurance products, and if so, were those products part of Administaff’s services?

These instances have left policyholders with more questions than answers. Typically, insurance brokers are licensed by state agencies and provide consumers with a choice of insurance products from different companies. Additionally, most companies that provide the types of services that Administaff provides cannot sell insurance as part of their business.

Have YOU been approached by Administaff

At this time, the Advocate Law Group is looking into the background of these claims. If you’ve been approached by Administaff, or one of its employees, to purchase insurance products, we’d like to know.