A type of insurance policy for self-insured health plans that limits the amount employers must pay for claims incurred under their group health plan. Stop-loss insurance generally is designed to ensure that catastrophic claims or an increased number of claims do not upset the financial reserves of a self-insured health plan. For example, stop-loss insurance may cover:

Stop-loss policies paid for out of the employer's general assets and without any employee contributions generally are not considered plan assets.