Glossary · Sales & procurement
Renewal Cliff
A renewal cycle in which a PEO presents materially higher pricing than the initial year, often due to claim experience or rate-action delay.
All terms
Entravia Editorial
Year-one PEO pricing sometimes uses pooled or new-business rates that don't fully reflect the client's claim experience. Year-two and three renewals can step up materially, particularly for groups with adverse experience.
Sophisticated buyers and brokers ask for explicit multi-year rate guidance during initial selection and structure the contract to give clear off-ramps if renewal economics deteriorate.
Related terms
- PEO UnderwritingThe risk-assessment process a PEO uses to decide whether to offer terms to a prospect and at what rates for benefits, workers' comp, and admin.
- PEO Transition PlanThe structured workstream of moving an employer's payroll, benefits, and HR records from a current state (no PEO or prior PEO) into a new PEO.
Trusted by operators across the PEO ecosystem
Ready when you are
See Entravia handle a real intake.
Walk through a live submission, structured data, and parallel quote distribution — in about 15 minutes.