Secrets to Unbeatable Self-Funded Stop Loss Coverage

Types of Stop Loss Coverage

There are primarily two types of stop loss coverage: specific stop loss and aggregate stop loss.

- **Specific Stop Loss**: This coverage protects against high claims from a single individual. Once an individual’s claims exceed a set threshold, the stop loss insurance kicks in to cover the excess amount. This is particularly beneficial for protecting against large, unexpected claims from serious illnesses or accidents.

- **Aggregate Stop Loss**: This coverage provides a safety net for the overall claims of the entire group. It activates when the total claims for the group exceed a predetermined amount. Aggregate stop loss is essential for ensuring that the collective claims of your employees do not surpass your budgeted amount.