Quarterly report pursuant to Section 13 or 15(d)

Self-Insurance Reserves

Self-Insurance Reserves
6 Months Ended
Jun. 30, 2021
Deferred Policy Acquisition Cost [Line Items]  
Self-Insurance Reserves
Medical Self-Insurance Reserves
— The Company is primarily self-insured for employee health benefits. The Company records its self-
insurance liability based on claims filed and an estimate of claims incurred but not yet reported. There is stop-loss coverage for amounts in excess
of $125,000 per individual per year. If more claims are made than were estimated or if the costs of actual claims increase beyond what was anticipated, reserves recorded may not be sufficient and additional accruals may be required in future periods. As of June 30, 2021 and December 31, 2020, the Company had reserved $2.8 million and $3.3 million, respectively.
Property and Casualty Reserves
— As
 part of its property management business, BPM arranges for property and casualty risk management for the properties and entities affiliated with the Company (the “Insurance Program”). BPM uses a broker to arrange for insurers to provide coverage deemed necessary by management and required by lenders or property owners. Under the terms of the risk management program, each property has a $
deductible for property and casualty claims for insured events. Insured property losses in excess of $
are self-insured by BPM or fully insured as described below.
BPM’s Risk Management Program for property risks includes a Self-Insured Retention (“SIR”) component in order to more efficiently manage the risks. BPM’s SIR is comprised of a layer of losses that BPM is responsible for satisfying after the properties have met their $25,000 deductible for each claim. That layer covers losses between $25,000 and $100,000 and has no aggregate limit for that layer of risk. All losses above $100,000 are fully insured. BIGRM, the captive risk management company wholly
owned by the Operating Company, provides a
$5.0 million insurance policy to cover the following: 100% of the $2.0 million layer above the deductible and 15% of the $3.0 million in losses/exposure above the $2.0 million layer or $450,000. All losses above $5.0 million are fully insured by multiple outside insurance carriers. There is also a $750,000 per occurrence limit for any single loss. All losses above the SIR thresholds are fully insured with the exception of catastrophic loss deductibles in excess of the deductibles outlined above. Catastrophic losses, in zones deemed catastrophic (CAT Zones), such as earthquake, named storm and flood zones, have deductibles that equal up to 5% of the insurable value of the property affected for a particular loss. Any catastrophic losses in
Zones are insured with the same $25,000 deductible and SIR of $75,000 as outlined above. The policy remained the same from 2019 to 2020.
On June 20, 2020, BPM added a general liability self-insured retention aggregate limit of $10.0 million with a per occurrence limit of $2.0 million and per location limit of $4.0 million. Any insurance claims above these limits are fully insured by multiple insurance carriers. BPM insured this retention with the BIGRM captive. As of June 30, 2021 and December 31, 2020, the Company had reserved $0.7 million and $0.4 million, respectively.
As of June 30, 2021 and December 31, 2020, the total self-insurance reserve liability was $3.5 million and $3.7 million, respectively.