Cut Costs Instantly With Stop Loss Insurance Secrets

How Does Stop Loss Insurance Work?

Stop-loss insurance is categorized into two main types: specific stop-loss and aggregate stop-loss. Specific stop-loss insurance covers individual claims that exceed a predetermined dollar amount. For example, if a single employee's medical expenses surpass the set threshold, the stop-loss coverage kicks in to cover the excess amount. On the other hand, aggregate stop-loss insurance provides coverage when the total claims for the entire group exceed a certain level during a policy period. This dual approach allows businesses to tailor their insurance strategies to fit their risk tolerance and financial capabilities.