Glossary — Benefits

Stop-loss insurance

Insurance that caps an employer's claim exposure on a self-insured health plan — specific (per claim) and aggregate (annual total).

Definition

Stop-loss insurance is purchased by self-insured employers to cap their exposure to catastrophic claims. Two coverage layers: specific stop-loss (per-claim cap, often $50K-$200K depending on size) and aggregate stop-loss (annual claim total cap).

Stop-loss only matters for self-insured plans. PEO master plans are typically fully-insured, so stop-loss isn't part of the standard PEO conversation.

Common questions about Stop-loss insurance

Insurance that caps an employer's claim exposure on a self-insured health plan — specific (per claim) and aggregate (annual total).

Stop-loss insurance is purchased by self-insured employers to cap their exposure to catastrophic claims.

Most PEO buying decisions touch several related concepts at once. Stop-loss insurance typically comes up alongside the other terms in this category. Closely related terms include Self-insured health plan, Group health insurance.

Browse the full PEO glossary

This is one entry from our PEO glossary covering payroll, benefits, workers comp, HR compliance, and PEO mechanics. Browse all terms.

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