1 unchanged sentence
Risk Factors” in the Company’s Annual Report on Form 10-K
−Removed: for the fiscal year ended December 26, 2020 as filed with the SEC.
−Removed: Increased severity or frequency of accidents and other claims or a material unfavorable development of existing claims.
−Removed: For periods prior to May 1, 2019, Landstar retains liability for commercial trucking claims up to $5,000,000 per occurrence and maintains various third party insurance arrangements for liabilities in excess of its $5,000,000 self-insured retention.
−Removed: Effective May 1, 2019, the Company entered into a new three year commercial auto liability insurance arrangement for losses incurred between $5,000,000 and $10,000,000 (the “Initial Excess Policy”) with a third party insurance company.
−Removed: For commercial trucking claims incurred on or after May 1, 2019 through April 30, 2022, the Initial Excess Policy provides for a limit for a single loss of $5,000,000, with an aggregate limit of $15,000,000 for each policy year, an aggregate limit of $20,000,000 for the thirty-six
−Removed: month term ended April 30, 2022, and options to increase such aggregate limits for pre-established
−Removed: amounts of additional premium.
−Removed: If aggregate losses under the Initial Excess Policy exceed either the annual aggregate limit or the aggregate limit for the three year period ending April 30, 2022, and the Company did not elect to increase such aggregate limits for a pre-established
−Removed: amount of additional premium, Landstar would retain liability of up to $10,000,000 per occurrence, inclusive of its $5,000,000 self-insured retention for commercial trucking claims during the remainder of the applicable policy year(s).
−Removed: The Company also maintains third party insurance arrangements providing excess coverage for commercial trucking liabilities in excess of $10,000,000.
−Removed: These third party arrangements provide coverage on a per occurrence or aggregated basis.
−Removed: Landstar retains liability for commercial trucking claims in excess of our coverage limits under these third party insurance arrangements.
−Removed: Due to the increasing cost of commercial auto liability claims throughout the United States in recent years, the availability of such excess coverage has significantly decreased and the pricing associated with such excess coverage, to the extent available, has significantly increased.
−Removed: Effective May 1, 2021, with respect to the annual policy year ending April 30, 2022, as compared to the annual policy year ended April 30, 2021, the Company experienced an increase of approximately $3 million, or 19%, in the premiums charged by third party insurance companies to the Company for excess coverage for commercial trucking liabilities in excess of $10,000,000.
−Removed: With respect to the annual policy year ending April 30, 2021, as compared to the annual policy year ended April 30, 2020, the Company experienced an increase of approximately $14 million, or over 170%, in the premiums charged by third party insurance companies to the Company for excess coverage for commercial trucking liabilities in excess of $10,000,000.
−Removed: Moreover, the Company has increased the level of its financial exposure to commercial trucking claims in excess of $10,000,000 through the use of additional self-insurance, deductibles, aggregate loss limits, quota shares and other arrangements with third party insurance companies, based on the availability of coverage within certain excess insurance coverage layers and estimated cost differentials between proposed premiums from third party insurance companies and historical and actuarially projected losses experienced by the Company at various levels of excess insurance coverage.
−Removed: The availability of excess coverage for commercial trucking claims could continue to deteriorate, the pricing associated with such excess coverage, to the extent available, could continue to increase, and insurance coverage from third party insurers for excess coverage of commercial trucking claims may not be available on commercially reasonable terms at certain levels.
−Removed: If any claim occurrence were to exceed our excess coverage limits under our third party insurance arrangements, such claim could have a material adverse effect on Landstar’s financial condition and results of operations.
−Removed: Further, the Company retains liability of up to $1,000,000 for each general liability claim, up to $250,000 for each workers’ compensation claim and up to $250,000 for each cargo claim.
−Removed: In addition, under reinsurance arrangements by Signature of certain risks of the Company’s BCO Independent Contractors, the Company retains liability of up to $500,000, $1,000,000 or $2,000,000 with respect to certain occupational accident claims and up to $750,000 with respect to certain workers’ compensation claims.
−Removed: The Company’s exposure to liability associated with accidents incurred by Truck Brokerage Carriers, railroads and air and ocean cargo carriers who transport freight on behalf of the Company is reduced by various factors including the extent to which such carriers maintain their own insurance coverage.
−Removed: A material increase in the frequency or severity of accidents, cargo claims or workers’ compensation claims or the material unfavorable development of existing claims could have a material adverse effect on Landstar’s cost of insurance and claims and its results of operations.
+Added: for the fiscal year ended December 26, 2020 and Quarterly Report on Form 10-Q
+Added: for the fiscal quarter ended June 26, 2021 as filed with the SEC.
+Added: Dependence on independent commission sales agents.
+Added: The Company markets its services primarily through independent commission sales agents.
+Added: During fiscal year 2020, 508 agents generated revenue for Landstar of at least $1 million each, or in the aggregate approximately 92% of Landstar’s consolidated revenue.
+Added: During the thirty-nine-week period ended September 25, 2021, one Landstar independent sales agency, itself with a very diversified customer base, generated approximately $500,000,000, or 10%, of Landstar’s consolidated revenue.
+Added: Landstar competes with motor carriers and other third parties for the services of these independent commission sales agents.
+Added: Landstar has historically experienced very limited agent turnover in the number of its Million Dollar Agents.
+Added: There can be no assurances, however, that Landstar will continue to experience very limited turnover of its Million Dollar Agents in the future.
+Added: Landstar’s contracts with its agents, including its Million Dollar Agents, are typically terminable without cause upon 10 to 30 days’ notice by either party and generally contain significant but not unqualified non-compete
+Added: provisions limiting the ability of a former agent to compete with Landstar for a specified period of time post-termination, and other restrictive covenants.
+Added: The loss of some of the Company’s Million Dollar Agents and/or a significant decrease in revenue generated by Million Dollar Agents could have a material adverse effect on Landstar, including its results of operations and revenue.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.