Accrued Insurance Claims

12 Months Ended

Jan. 28, 2023

For claims within our insurance program, we retain the risk of loss, up to certain annual stop-loss limits, for matters related to automobile liability, general liability (including damages associated with underground facility locating services), workers’ compensation, and employee group health. Losses for claims beyond our retained risk of loss are covered by insurance up to our coverage limits.

For workers’ compensation losses during fiscal 2023, 2022, and 2021, we retained the risk of loss up to $1.0 million on a per occurrence basis. 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.

For automobile liability and general liability losses during fiscal 2023, 2022, and 2021, we retained the risk of loss up to $1.0 million on a per-occurrence basis for the first $5.0 million of insurance coverage. We also retained the risk of loss for automobile and general liability for the next $5.0 million on a per-occurrence basis with aggregate stop loss limits of $11.5 million within this layer of retention over the period from fiscal 2021 to fiscal 2023. During fiscal 2023 we retained $5.0 million risk of loss on a per occurrence basis for losses between $10.0 million and $15.0 million, if any. Additionally, during fiscal 2023 and 2022 we retained $10.0 million risk of loss on a per occurrence basis for losses between $30.0 million and $40.0 million, if any.

We are party to a stop-loss agreement for losses under our employee group health plan. For the calendar year 2020, we retained 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. For the calendar years 2021, 2022, and 2023, we retain the risk of loss on an annual basis, up to the first $600,000 of claims per participant.

Amounts for total accrued insurance claims and insurance recoveries/receivables are as follows (dollars in thousands):


	January 28, 2023		January 29, 2022
Accrued insurance claims - current	$	41,043	$	36,805
Accrued insurance claims - non-current	49,347		48,238
Accrued insurance claims	$	90,390	$	85,043

Insurance recoveries/receivables:
Current (included in Other current assets)	$	—	$	756
Non-current (included in Other assets)	4,957		3,687
Insurance recoveries/receivables	$	4,957	$	4,443

The liability for total accrued insurance claims included incurred but not reported losses of approximately $48.0 million as of January 28, 2023 and January 29, 2022, respectively.

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 2023, total insurance recoveries/receivables increased approximately $0.5 million primarily due to the settlement of claims that exceeded our loss retention. Accrued insurance claim increased by a corresponding amount.