Stop-loss Insurance Term

It is a policy where a predetermined amount has to be paid (generally by those who are self-insured) to prevent the risk of bankrupting a company due to multiple claims. Typically applies in the case of huge epidemic spread where multiple claims might be made at the same time, leaving the insurance provider in the danger of bankruptcy. Also applies in the case of employee insurance programs to address the risk of multiple claims from the insured employees at the same time.