Mid-Sized Employers Most Likely to Carry Stop-Loss Protection

To mitigate exposure to unusually high claims, employers will often purchase stop-loss coverage. An employer without the resources to cover unusually high claims could face financial distress or even insolvency, putting employees’ access to paid claims at risk. Stop-loss coverage limits an employer’s liability for high-cost claims by requiring the insurer to cover expenses set above a certain threshold. This Fast Fact examines the differences in stop-loss coverage by firm size.