As an example, if a self-insured company has set a $50,000 stop-loss limit per employee and one employee incurs $100,000 in medical bills due to a major surgery, the stop-loss insurance would cover the excess $50,000.
Similarly, if the company has an aggregate limit of $300,000 but the total of claims from all employees is $375,000 for the year, stop-loss would cover the additional $75,000.
