Note 6 - Claims Liabilities

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Liability for Future Policy Benefits and Unpaid Claims Disclosure [Text Block]

6. CLAIMS LIABILITIES

The Company maintains cargo insurance coverage to protect it from certain business risks. This policy has a per occurrence deductible of

$10,000.

On

September 1, 2019,

the Company elected to become self-insured for certain layers of auto liability claims in excess of

$1.0

million. Prior to

September 1, 2019,

the Company maintained auto liability insurance coverage for these layers. The Company specifically reserves for claims that are expected to exceed

$1.0

million when fully developed, based on the facts and circumstances of those claims.

Beginning

September 1, 2018,

the Company became self-insured for physical damage losses on its trucks. Prior to

October 1, 2013,

the Company was self-insured for physical damage losses on its trailers. From

October 1, 2013

until

September 30, 2015,

the Company insured its trailers for physical damage losses with a

$2,500

deductible per occurrence. Beginning

October 1, 2015,

the Company elected to self-insure trailers for physical damage losses.

The Company maintains workers’ compensation coverage in Arkansas, Ohio, Oklahoma, Mississippi, and Florida with a

$500,000

self-insured retention and a

$500,000

per occurrence excess policy. The Company has elected to opt out of workers’ compensation coverage in Texas and is providing coverage through the P.A.M. Texas Injury Plan. The Company has accrued for estimated losses to pay such claims as well as claims incurred but

not

yet reported. The Company has

not

experienced any adverse trends involving differences in claims experienced versus claims estimates for workers’ compensation claims. Letters of credit aggregating approximately

$430,000

and certificates of deposit totaling

$300,000

are held by banks as security for workers’ compensation claims. The Company self-insures for employee health claims with a stop loss of

$350,000

per covered employee per year and estimates its liability for claims outstanding and claims incurred but

not

reported. See Note

5

– Accrued Expenses and Other Liabilities for additional information regarding self-insurance claims liabilities.