A stop loss means exactly what it implies, "it stops your loss" and the insurance carrier picks up all other costs during that calendar year. For individuals that have health insurance a stop loss is also known as the annual out-of-pocket maximum. After you reach the out-of-pocket maximum in a calendar year the insurance carrier pays the rest of the claims.
In a self-insurance situation where a company pays the claims up to a certain dollar amount the "stop loss" is the most the employer will pay in any year after which the insurance carrier will pay the remaining claims.
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In a self-insurance situation where a company pays the claims up to a certain dollar amount the "stop loss" is the most the employer will pay in any year after which the insurance carrier will pay the remaining claims.