Self-Funded Employers Reap Huge Benefits with Stop Loss Quotes

The Role of Stop Loss Insurance

While self-funding offers numerous benefits, it also carries the risk of unpredictable high-cost claims. This is where stop loss insurance comes into play. Stop loss insurance protects employers by reimbursing them for claims that exceed a predetermined threshold. There are two main types of stop loss coverage:

• Specific Stop Loss: Protects against high claims from any single individual.
• Aggregate Stop Loss: Provides coverage when the total claims for the group exceed a certain amount.

By incorporating stop loss insurance, employers can mitigate the financial risks associated with self-funding, ensuring that they are not exposed to catastrophic losses.