The self-funded plan is becoming a popular choice - approximately 61% of US employees covered by employer-sponsored health insurance are in firms that self-fund.1 Stop loss insurance is designed to protect self-funding employers from the high costs that may occur due to unexpected or catastrophic claims from employees.
Without stop loss insurance, the employer is fully responsible if medical claims are higher than expected. Even one large claim could create a serious financial drain on your company, particularly if you own a smaller or mid-size firm.
With this insurance, you pay a predetermined amount on employee medical claims. Any amount beyond that would be covered. While this insurance is traditionally for larger employers, Guardian also offers stop loss protection to mid-sized and small business owners.