• Stop-loss insurance essentially provides excess coverage for a self-insured employer. The employer and the insurance carrier agree to the amount the employer will cover, and the stop-loss insurance will cover claims exceeding that amount. [Cases: Insurance 2523, 2525(1). C.J.S. Insurance § 930.]
stop loss insurance
Insurance that protects a self-insured employer from catastrophic losses or unusually large health costs of covered employees.
