Accrued Insurance Claims

12 Months Ended

Jan. 25, 2020

For claims within our insurance program, we retain the risk of loss, up to certain limits, for matters related to automobile liability, general liability (including damages associated with underground facility locating services), workers’ compensation, and employee group health. With regard to workers’ compensation losses occurring in fiscal 2017 through fiscal 2020, we retain the risk of loss up to $1.0 million on a per occurrence basis. This retention amount is unchanged for the 12 month policy period ending in January 2021. This retention amount is applicable to all of the states in which we operate, except with respect to workers’ compensation insurance in two states in which we participate in state-sponsored insurance funds.

With regard to automobile liability and general liability losses occurring in fiscal 2017 through fiscal 2020, we retain the risk of loss of up to $1.0 million on a per-occurrence basis. This retention amount is unchanged for the first $5.0 million of insurance coverage (“primary liability insurance”) for the 12 month policy period ending in January 2021. Aggregate stop-loss coverage for primary liability insurance claims, including workers’ compensation claims, was $77.1 million for fiscal 2020, $78.9 million for fiscal 2019, $67.1 million for the 2018 transition period, and $103.7 million for fiscal 2017. Aggregate stop-loss coverage for primary insurance claims, including workers’ compensation claims, is $85.8 million for the 12 month policy period ending January 2021.

With regard to automobile liability and general liability losses exceeding $5.0 million (“excess liability losses”), we retain risk of loss of up to $5.0 million on a per-occurrence basis for the 12 month policy period ending January 2021. Aggregate stop-loss coverage for excess liability losses is $11.5 million for the 12 month period ending January 2021. Excess liability losses greater than $10 million are covered by insurance.

We are party to a stop-loss agreement for losses under our employee group health plan. For calendar years 2017 through 2019, we retain the risk of loss, on an annual basis, up to the first $400,000 of claims per participant, as well as an annual aggregate amount for all participants of $425,000. For the calendar year 2020, we retain the risk of loss on an annual basis, up to the first $450,000 of claims per participant, as well as an annual aggregate amount for all participants of $475,000. Amounts for total accrued insurance claims and insurance recoveries/receivables are as follows (dollars in thousands):



	January 25, 2020		January 26, 2019
Accrued insurance claims - current	$	38,881	$	39,961
Accrued insurance claims - non-current	56,026		68,315
Accrued insurance claims	$	94,907	$	108,276

Insurance recoveries/receivables:
Non-current (included in Other assets)	4,864		13,684
Insurance recoveries/receivables	$	4,864	$	13,684

Insurance recoveries/receivables represent the amount of accrued insurance claims that are covered by insurance as the amounts exceed the Company’s loss retention. During fiscal 2020, total insurance recoveries/receivables decreased approximately $8.8 million primarily due to the settlement of claims. Accrued insurance claims decreased by a corresponding amount.