Most business owners genuinely want to take care of their employees, and that includes offering benefits to support them during life's hardest moments.
Whether it's for a serious health issue, the loss of a loved one, or a long-term disability, benefits like short-term disability, long-term disability, and life insurance are often seen as standard.
But offering benefits is not enough.
The real question is: would those benefits actually pay out when your employees need them most?
Benefits Come With Responsibility
As employers, we don’t like thinking about worst-case scenarios. But if you're providing these benefits, you're also carrying legal and financial responsibility for managing them correctly.
And far too often, that part gets overlooked.
In my role as an HR consultant, I see this all the time:
- A company offers strong benefits on paper
- An employee becomes disabled or passes away
- The claim is submitted to the insurance carrier
- The claim is denied because of an error no one caught
The Most Common Mistake
Most companies assume their benefits are in good standing because:
- The invoice gets paid each month
- HR looked over the bill and nothing seemed wrong
- Everyone who enrolled is still listed on the plan
But that’s not a real audit.
A true monthly audit involves verifying:
- Each employee is enrolled in the correct plan
- Deductions are taken properly through payroll
- Premiums match the benefits selected
- Any changes from open enrollment or qualifying events have been applied accurately
If these steps aren’t being done consistently, you’re exposed to risk.
What Happens When a Claim Is Denied?
If a mistake has gone unchecked for too long, the carrier may deny a claim when it matters most.
That could mean:
- A disabled employee is left without income support
- A family expecting a life insurance payout receives nothing
- The company faces legal or reputational consequences
Offering benefits is expensive. But offering benefits and not managing them properly can be even more costly.

What You Can Do
Protect your team and your business by making sure:
- Your benefits are audited monthly
- You know exactly who is covered and for what
- Deductions are accurate and up to date
- Any discrepancies are corrected within the carrier’s time limits
If you’re not sure your current process meets these standards, it’s time to take a closer look.
Good Intentions Aren’t Enough
Offering benefits with the intention to support your employees is a great first step. But to truly protect them, those benefits must be reviewed and managed with care.
If you’re unsure whether your benefits would hold up when it counts, we’re here to help you get answers and put the right safeguards in place.
