This excerpt taken from the WEN 10-K filed Mar 1, 2007.
ARGs current insurance may not provide adequate levels of coverage against claims it may file.
ARG currently maintains insurance customary for businesses of its size and type. However, there are types of losses it may incur that cannot be insured against or that ARG believes are not economically reasonable to insure, such as losses due to natural disasters or acts of terrorism. In addition, ARG currently self-insures a significant portion of expected losses under its workers compensation, general liability and property insurance programs. Unanticipated changes in the actuarial assumptions and management estimates underlying ARGs reserves for these losses could result in materially different amounts of expense under these programs, which could harm ARGs business and adversely affect its results of operations and financial condition.