The following table summarizes the aggregate workers’ compensation reserve activity (in thousands):


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2024			2023			2024			2023
Beginning balance
Workers' compensation claims liabilities	$	158,054		$	201,641		$	167,763		$	215,987
Add: claims expense incurred
Current period		3,699			3,482			7,299			7,844
Prior periods		(1,830	)		(1,580	)		(4,822	)		(2,694	)
Total claims expense incurred		1,869			1,902			2,477			5,150
Less: claim payments related to
Current period		1,565			585			2,519			765
Prior periods		8,734			11,807			18,223			29,287
Total claim payments		10,299			12,392			20,742			30,052

Change in claims incurred in excess of retention limits		6			671			132			737
Ending balance
Workers' compensation claims liabilities	$	149,630		$	191,822		$	149,630		$	191,822

The Company provides workers’ compensation coverage for client employees primarily through arrangements with fully licensed, third-party insurers (the “insured program”). Under this program, carriers issue policies or afford coverage to the Company’s clients under a program maintained by the Company. Approximately 85% of the Company’s workers’ compensation exposure is covered through the insured program.

Effective July 1, 2021, the Company entered into a fully insured arrangement for its insured program, whereby third-party insurers assume substantially all risk of loss for claims incurred under the program. This fully insured arrangement has been extended annually and covers claims incurred between July 1, 2021 and June 30, 2025, with an option to renew through June 30, 2026.

For claims incurred under the insured program prior to July 1, 2021, the Company retains risk of loss up to the first $3.0 million per occurrence on policies issued after June 30, 2020 and $5.0 million per occurrence on policies issued before that date.

Claim obligations for policies issued under the insured program between February 1, 2014 and June 30, 2018 were removed through loss portfolio transfers in 2020 and 2021.

The Company is required to maintain minimum collateral levels for certain policies issued under the insured program, which is held in a trust account (the “trust account”). The balance in the trust account was $181.3 million and $210.9 million at June 30, 2024 and December 31, 2023, respectively. The trust account balance is included as a component of the current and long-term restricted cash and investments in the Company’s condensed consolidated balance sheets.

The Company is a self-insured employer with respect to workers' compensation coverage for all employees, including employees of PEO clients that elect to participate in our workers’ compensation program, working in Colorado, Maryland, Ohio, and Oregon. In the state of Washington, state law allows only the Company's staffing services and internal management employees to be covered under the Company's self-insured workers' compensation program. The Company also operates a wholly owned, fully licensed insurance company, Ecole, which provides workers’ compensation coverage to client employees working in Arizona and Utah. Approximately 15% of the Company’s workers’ compensation exposure is covered through self-insurance or Ecole (the “self-insured programs”).

For all claims incurred under the Company’s self-insured programs, the Company retains risk of loss up to the first $3.0 million per occurrence, except in Maryland and Colorado, where the Company’s retention per occurrence is $1.0 million and $2.0 million, respectively. For claims incurred under the Company’s self-insured programs prior to July 1, 2020, the Company retains risk of loss up to the first $5.0 million per occurrence, except in Maryland and Colorado, where the retention per occurrence is $1.0 million and $2.0 million, respectively.

The states of California, Maryland, Oregon, Washington, Colorado and Delaware required the Company to maintain collateral totaling $47.0 million and $48.1 million at June 30, 2024 and December 31, 2023 to cover potential workers’ compensation claims losses related to the Company’s current and former status as a self-insured employer. At June 30, 2024, the Company provided surety bonds totaling $47.0 million.

The Company provided a total of $149.6 million and $167.8 million at June 30, 2024 and December 31, 2023, respectively, as an estimated future liability for unsettled workers' compensation claims liabilities. Of this amount, $6.1 million and $6.0 million at June 30, 2024 and December 31, 2023, respectively, represent case reserves and IBNR in excess of the Company’s retention. The accrual for costs incurred in excess of retention is offset by a receivable from insurance carriers of $6.1 million and $6.0 million at June 30, 2024 and December 31, 2023, respectively, included in other assets in the condensed consolidated balance sheets.