Stop Loss Insurance

Employer Stop Loss Insurance

Premier is one of the leading stop loss insurance consultants in the country. We partner with national stop loss carriers who produce highly competitive rates for our clients and manage more than $18 million in stop loss premiums, allowing us to negotiate competitive “reinsurance” protection.

What is Stop Loss Insurance?

Stop loss insurance – also known as excess insurance or reinsurance – is purchased to protect a self-funded health plan from high claims by putting a ceiling on financial risk. This provides protection against catastrophic or unpredictable losses. Stop loss coverage is purchased by employers who have decided to self-fund their employees benefit plans, but do not want to assume 100 percent of the liability for losses arising from the plans. Under an employer’s self-funded stop loss policy, the insurance company becomes liable for losses that exceed certain limits called deductibles.

Employer stop loss insurance is available in two forms, with a number of variations for each product:

  1. Specific (Individual) Stop Loss protects the employer against large claims for any individual during a policy year. This is a way to shield against the threat of “shock loss” by limiting claim liability with respect to any one plan participant. It provides prompt reimbursement if claims exceed a specified per participant deductible amount.
  2. Aggregate Stop Loss protects the employer against having excess claims utilization for the entire group. When the annual claim limit for all participants exceeds a predetermined level, aggregate stop loss reimburses the self-funded employer for all claims exceeding that level during the agreement year.

Additional Employer Stop Loss Options:

  • Aggregating Specific provides a means for employers to reduce their self-funded stop loss premiums by assuming more risk.
  • Specific and Aggregate Terminal Liability extends stop loss insurance for an additional three (3) months following the termination of a policy.
  • Advance Funding pays catastrophic claims once the specific deductible is met. Eliminates the employer’s need to fund high-cost claims and wait for reimbursement.
  • Non-Laser Provision limits the liability to an employer due to a catastrophic illness.

Why Use Premier to Market Stop Loss Insurance?

Premier is the leading expert in stop loss insurance in Western New York and one of the top employer stop loss consultants in New York state and the country.

  • We leverage our loss ratio to get preferred stop loss insurance rates
  • Cost management combined with our proprietary data analytical tool is recognized by national stop loss carriers as an advantage in prompt notification of and engagement in the management of potential high-risk clients
  • We are experts in assessing risk tolerance and can provide risk analysis to employers to consider when deciding between options for self-funded stop loss coverage


Click here to learn more about what Premier can do for you.

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