What is stop loss insurance?

Posted on Monday October 22, 2012

The insurance industry is multi-faceted, and it has a language all its own. Some people hear the term “stop loss insurance,” and they’re a little confused as to exactly what it means. In essence, there are two types of this insurance.

One is “specific stop loss,” which will protect an employer against a high claim from one employee. The other is “aggregate stop loss,” which places a limit or ceiling on how much of eligible expenses a company would pay within a contract period. The carrier providing the insurance reimburses the employer when the contract is over for aggregate claims made while the contract was active.

Elite Underwriting Services provides stop loss insurance to many types of businesses and professional entities. Also sometimes referred to as “medical stop loss,” it’s one of our primary functions as we align with A+ and A rated carriers to offer the most effective policies possible to our clients.

There are a wide range of business types who could experience unpredictable or catastrophic losses by way of claims filed by their employees. Medical stop loss is usually purchased by companies that are self-funding the health and benefits plans of their workers. Handling health plans this way lets employers provide employees with consistent, customized benefits.

With the proper financial controls, employers can improve their bottom lines as they receive cash flow benefits. Stop loss insurance is the right choice for companies that want to avoid being responsible for 100 percent of liability for losses that arise from plans. With medical stop loss, the company’s insurance carrier is responsible for losses over a certain limit.

Medical stop loss differs from conventional benefit insurance in that it covers the employer, not the company’s employees.

Elite Underwriting customizes stop loss insurance packages for companies, taking into account their specific risk objectives. Our goal is always to give you exactly what you need – nothing more, nothing less. For most of our commercial clients, a combination plan of both specific and aggregate medical stop loss is the most appropriate choice, although some can have their protection needs met with just specific stop loss.

If you’d like to learn more about our medical stop loss insurance plans, you can go to our Medical Stop Loss page. To see a detailed description of benefits and features in these policies, visit our Insurance Stop Loss page.

We’re committed to providing a full range of insurance services for clients who put their trust in us to protect their best interests at all times. If we can answer any questions or provide more information, don’t hesitate to call (610) 280-4300, or contact us through our website.


Regional Corporate and Sales Offices To Serve You
HIIG Accident & Health Malvern, PA
75 Valley Stream Parkway Suite 250
Malvern, PA 19355

P: 800.796.9165
F: 610.280.4298
HIIG Accident & Health Indianapolis, IN
251 North Illinois Street Suite 940
Indianapolis, IN 46204

P: 317.829.7270
F: 317.829.7277
HIIG Accident & Health Wakefield, MA
401 Edgewater Place Suite 180
Wakefield, MA 01880

P: 888.658.3350
F: 888.340.4577


HIIG Accident & Health Atlanta, GA
600 Galleria Parkway Suite 770
Atlanta, GA 30339

P: 770.933.3420
F: 770.933.3419


HIIG Accident & Health Scottsdale, AZ
8800 East Raintree Drive Suite 260
Scottsdale, AZ 85260

P: 480.707.0330
F: 610.280.4298


HIIG Accident & Health Dallas, TX
13355 Noel Road
Suite 1950
Dallas, TX 75240

P: 713.935.4800
Putting Substance into the Abstract

Our professionals partner with you to make sense of a chaotic world of stop-loss claims