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Catastrophic Claim Stop Loss Calculator

Stop-loss caps exposure on individual catastrophic claims.

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Coverage value

$45,000

Expected covered loss

$90,000

Break-even premium

$90,000

How the math works

Covered portion = claim − retention. Expected = covered × prob. Value = expected − premium.

$5M − $500k = $4.5M covered × 2% = $90k expected − $45k premium = $45k coverage value.

How to Use

  1. Enter retention amount.
  2. Enter catastrophic claim probability %.
  3. Enter expected claim size.
  4. Enter stop-loss premium.
  5. Read coverage value.

Frequently Asked Questions

Stop-loss mechanics?

Insurance caps single-occurrence loss. Above retention (e.g., $500k), stop-loss pays to policy limit ($10M+). Applied to liability, property, or business interruption. Essential for institutions self-insuring primary.

Specific vs aggregate?

Specific: caps single claim. Aggregate: caps total year claims. Different coverage triggers. Usually purchased in combination. Each addresses different risk type. Premium scales with limit and retention.

Typical pricing?

Specific (per occurrence): 0.1-0.5% of limit. Aggregate: 0.05-0.25% of limit per $1M. Higher for volatile exposures (catastrophe zones, high-risk industries). Lower for stable operations.

How do insurance carriers view this?

Insurance carriers underwrite per-peril and often stack deductibles — named storm, wind, hail, flood, and standard can all apply separately on a single event. Confirm with your broker which deductibles actually apply to your policy and stress-test liquidity against the highest applicable deductible. Endorsements and riders can modify base terms; read declarations carefully and keep a written summary on file for claim time.

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