The Hidden Risks in Your Group Benefits Plan (And How to Fix Them)

For many founders, a benefits plan feels like something you can “set and forget.” The premiums get paid, claims are processed, and on the surface, everything looks fine. But beneath that simplicity are risks that can undermine retention, increase costs, and create liabilities you never planned for.

In today’s market, overlooking those risks is one of the most expensive mistakes a business can make.

The Blind Spots You Don’t See

Even plans that look solid on paper often contain hidden weaknesses. Travel coverage may not fully protect employees who are often on the road. Disability benefits may only replace a fraction of income, leaving leadership roles financially vulnerable. And while mental health coverage was once seen as a perk, today it’s a core expectation—one that many plans still fail to meet.

Each of these gaps creates exposure: financial for the company, personal for the employee, and reputational for leadership.

When Employees Misunderstand Their Coverage

Another risk is employee perception. Too often, employees don’t fully understand what their plan covers—or where the limits are. That confusion can lead to frustration when claims are denied, or worse, unmet needs that impact health, productivity, and morale. A plan that looks competitive in your renewal documents can fall flat in practice if employees don’t know how to use it.

The Cost of “Set and Forget”

Group benefits aren’t static. Workforce demographics, utilization patterns, and rising industry benchmarks shape them. When a plan goes years without adjustment, it inevitably drifts out of alignment with employee needs and employer budgets.

The result? Higher costs, lower satisfaction, and liabilities that could have been avoided with proactive management.

Why Reviews and Benchmarking Matter

Renewals should be more than just a rate negotiation. Interim reviews throughout the year, paired with annual benchmarking against industry peers, provide early warning signs of rising costs or coverage gaps. They also help identify opportunities to improve performance before issues become expensive problems.

It’s not about tinkering—it’s about protecting your budget, your people, and your company’s reputation.

The Pelorus Approach

At Pelorus, we don’t see benefits as a once-a-year transaction. We view them as an ongoing strategy. That means benchmarking your plan against real market data, monitoring performance across the year, and strengthening coverage where it matters most—whether that’s travel, disability, or mental health.

The result is a plan that reduces risk, boosts employee engagement, and supports long-term business performance.

The true value of a benefits plan isn’t in what you pay for—it’s in how well it protects your people and your business.