Self Insurance and Retained Loss Reserves

12 Months Ended

Dec. 31, 2023

Self Insurance and Retained Loss Reserves [Abstract]

Self Insurance and Retained Loss Reserves

Self-Insurance and Retained Loss Reserves

We self-insure our employee medical benefits, as well as a portion of our automobile, general liability and workers' compensation claims. We have insurance coverage that limits the exposure on individual claims. The cost of the insurance is expensed over the contract periods. Utilizing historical claims experience, we record an accrual for the claims based upon the expected amount of all such claims, which includes the cost of claims that have been incurred but not reported. Accrued medical benefits and workers' compensation expenses are included in "Accrued employee benefits and compensation expenses" while accrued automobile and general liability expenses are included in "Other accrued expenses."

The following is a summary of the changes in the reserves for self-insurance and the retained losses (in millions):


	Year Ended December 31,
	2023		2022		2021
Balance at beginning of period	$	12.5	$	10.4	$	10.0
Net payments	(33.7)		(27.8)		(33.5)
Expense	28.4		29.9		33.9
Balance at end of period	$	7.2	$	12.5	$	10.4

Individual stop-loss coverage for medical benefits was $0.5 million in 2023, 2022 and 2021. There was no aggregate policy limit for medical benefits for the Company in the last three years. The retention for automobile and general liability claims was $1.0 million per occurrence and the retention for workers' compensation claims was $0.5 million per occurrence with a $1.0 million corridor deductible in the 2023, 2022 and 2021 policy years. Once the $1.0 million corridor deductible is met for workers' compensation claims, the deductible reverts back to $0.5 million per occurrence. These retentions were aggregated for workers’ compensation, automobile and general liability claims at approximately $28.5 million in 2022 and 2021. If these aggregates were met, the insurance company would have paid the next $7.5 million. In 2023, the aggregate limit of the general liability primary policy was $3.0 million. After the aggregate limit of the general liability primary policy has been exhausted, the excess layers will respond subject to each policies terms and conditions.