Insurance term
Stop-Loss Insurance
Stop-loss insurance is coverage that protects a self-funded health plan from very large or unexpected claims. The plan sponsor pays claims up to a set limit, and the stop-loss policy may reimburse costs above that limit, helping reduce financial risk.
Example
A small employer that self-funds employee health benefits buys stop-loss insurance so one employee’s major medical claim does not overwhelm the company’s budget.
Related coverage
Health Insurance
Access quality healthcare with affordable health insurance plans.
Related terms
Comparisons to help you decide
Ready to protect what matters?
Get a free, no-obligation quote. Our bilingual agents compare 30+ carriers to find you the best coverage at the best price.
