The Guardian Life Insurance Company of America, a mutual life insurer and employee benefits provider, has rolled out its stop loss insurance product for employers that self-fund their own health plans.

Guardian’s Stop loss insurance assists employers to diminish financial risk when self-funding a medical plan by offering protection against catastrophic or unpredictable claims. Currently the product is approved in 23 states, while nationwide launch is likely to happen by mid-2014.

Stop Loss reduces the uncertainty and the potential liability of self-funding medical plans by placing a limit on the total financial risk employers can face.

A research by Kaiser Family Foundation highlighted that nearly 60% of US employees covered by employer-sponsored health insurance were in firms that self-insure in 2011.

Without requiring minimum limit to meet before a reimbursement is paid, the insurance provides seamless coordination with the employer’s medical carrier or Third Party Administrator (TPA) for timely claims reimbursements.

Guardian group products vice president Ray Marra said, "Guardian’s Stop Loss insurance enables employers – large or small – that self-fund to manage plan costs while still delivering the health coverage their employees require.

"When it comes to Stop Loss protection, financial stability is a critical consideration. Guardian has a long history of financial strength, which helps assure brokers and employers that they can rely on our company today and into the future."

Set up in 1860, Guardian and its subsidiaries offer life, disability income and dental insurance products, and offer funding vehicles for 401(k) plans, annuities and other financial products.