This is the fourth in a five-part series of blog posts recapping our webinar, Preventing strains and sprains.
The fourth segment of SFM’s webinar focused on implementing solutions for the workplace risk factors identified in the previous section. (See Part III below for more information.)
Here, Eric Johnson, Loss Prevention Specialist, discussed minimizing ergonomic risk factors in the workplace. He gave specific examples of things employers can do to reduce musculoskeletal disorders created by high-force loads, repetition and awkward postures.
Johnson, who has about 20 years of experience in the field, also provided information on other methods to prevent musculoskeletal disorders, such as stretching programs, getting employees to move more during work hours and encouraging them to drink more water.
Additionally, he outlined safety programs and training opportunities employers can use to help maintain a safe workplace. To wrap up his portion of the presentation, Johnson encouraged annual reviews of:
This is the fifth in a five-part series of blog posts recapping our webinar, Preventing strains and sprains.
The final section of SFM’s presentation focused on the legal aspects of strain and sprain injuries.
John Hollick, Chief Defense Counsel at SFM’s in-house law firm, outlined the legal issues that can arise from these injuries and their impact on workers’ compensation benefits.
“The legal standard, generally, is that for an injury to be compensable, it’s not necessary that the employment be the only cause of the condition for which benefits are sought,” Hollick said. “It is sufficient that the employment is a substantial contributing factor. In many cases, it is up to the medical provider to determine what constitutes a substantial contributing factor. Or, in other words, whether the work activities more likely than not caused the injury.”
Hollick, who has decades of experience in the field, also talked about the risks and costs associated with litigated claims. He finished his portion of the presentation by examining the pros and cons of conducting surveillance, outlining the litigation process and discussing what policyholders can do to reduce the risk of litigation.
Mark your calendars now to join us for the SFM Foundation’s fall events.
The SFM Foundation is a nonprofit that helps families affected by workplace injuries by providing scholarships to children of workers disabled or killed in work-related accidents.
Next is the Minnesota Fall Social fundraiser , which will be held at Pinstripes in Edina. This is a new event and new location for 2025. It will be held Thursday, Nov. 6.
More details will be announced as the events draw near.
Other SFM Foundation updates
Earlier this year, the SFM Foundation announced nearly $600,000 in new scholarships, a record since the organization was founded in 2008.
“We have seen a steady uptick in the number of applicants for our scholarship, so being able to award more students and provide more funding this year is amazing,” said Deb Zorn, the foundation’s Scholarship Director. “It’s so rewarding to see these young people follow their dreams with the support of the foundation community.”
This year marks the highest number of scholarships awarded in the foundation’s history – 19.
Also, the SFM Foundation’s summer golf tournaments generated $150,000.
“We are so grateful for the continued support of our agent partners, clients and others in the community,” said Linda Williams, President of the SFM Foundation. “Without their generosity, we wouldn’t be able to help as many students as we do each year.”
About the SFM Foundation
The SFM Foundation was created in 2008 by SFM Companies. The nonprofit is dedicated to easing the burdens on families affected by workplace accidents. Scholarships are awarded regardless of which workers’ compensation insurer was involved in the claim. Since its inception, the foundation has awarded 266 scholarships totaling $4.7 million. For more information, visit sfmfoundation.com .
Wes Spain has been with SFM since 2022 as a Subrogation Specialist & Special Investigation Unit (SIU) Manager. We asked Spain to share a little bit about his background and role.
Tell us little bit about your background.
I grew up in an insurance household. Both of my parents worked for insurance companies, so I watched them and how they handled insurance.
When I got out of college I worked for an insurance company, then at a rental car agency for a bit, then back in insurance for 19 years. I joined SFM in 2022 and got into subrogation. It’s been great and I really enjoy it here.
How would you describe your role in a nutshell?
To be a learner and a leader at the same time. Although I’m a leader of a team, I’m new to workers’ compensation, so I’m learning as I go. My main role is to work with my team, work with attorneys and outside surveillance vendors, handling subrogation claims, reviewing catastrophic claims for subrogation potential, as well as leading a team of SIU reps — being a coach and motivator for them, addressing any issues they have, and hopefully making life at SFM somewhat enjoyable for them.
How is SFM different from other carriers you’ve worked with?
SFM feels like your neighbors, like your family. It’s very closeknit. At other companies, you kind of feel like a tree in a forest. At SFM, you’ll have the CEO and COO asking about you and your kids and your weekend. We all know each other and have a great sense of community here.
Is there a time that stands out to you when your job was particularly rewarding?
Thursdays – I love Thursdays because that’s when we get our results entered. It is a real time measure of our success and it’s rewarding most weeks, because it’s a team effort. Many factors go into making a recovery that could reduce or eliminate our ability to recover so when you get the check it’s a good feeling.
What do you like about your job?
I like the ability to work with different people and different departments. I like working closely with my team.
We’re here to serve claims and I’ve always been a customer service guy. Any time we’re able to accomplish that though bringing back subrogation dollars or completing a strong investigation, that makes me feel like we’re getting the job done.
What’s most challenging about your job?
When I don’t know something — having to figure out who the right person is to get that answer. Being relatively new, I still don’t know exactly what everybody does. Plus, if I’ve done a process, it might have been just once. Figuring out things I don’t do very often and that aren’t in my wheelhouse keeps me on my toes.
What words of wisdom do you have for employers?
I would suggest that they treat their employees well and provide a good work-life balance.
Recognize talent early and make sure you hold onto them and reward them appropriately. Continue to push them up. The best companies have employees who mostly feel like they’re rewarded and recognized for what they do every day.
A new hands-free driving law went into effect in Iowa on July 1, 2025, highlighting legal aspects of safe driving.
Iowa’s law is similar to those in other states and prohibits drivers from using electronic devices unless the device is in a hands-free setting. The statute bars drivers from holding their phone, which includes:
Typing
Scrolling
Entering GPS coordinates
Streaming video
Viewing content
Making calls unless voice activated
State officials are allowing an initial warning period through the end of 2025.
“Iowa’s new hands-free law marks a pivotal moment in our fight against distracted driving; it’s an unprecedented opportunity to fundamentally change driver behavior,” Brett Tjepke, chief of the Governor’s Traffic Safety Bureau, said in a press release . “By embracing this change, we can drastically reduce fatalities and serious injuries on our roads, making Iowa safer for everyone.”
Safe driving
Not using a phone while driving is not only the law in many states, it’s also a good safety practice.
The National Highway Traffic Safety Administration (NHTSA) reports that 3,275 people died in distraction-affected crashes in 2023.
While more than 30 states have laws related to driving and cellphone use, companies can take the extra step of addressing the matter in company policy.
SFM provides a sample cellphone policy CompTalk in our resource catalog. The example policy prohibits any use of phones while driving for work, regardless of an employee’s use of hands-free devices. It requires employees pull over and stop before calling, answering, or texting using a cellphone.
Accessing or posting on social media, streaming videos, searching a website or otherwise using a phone is prohibited. For repeat offenders, the fine can be $300 or more, including court fees.
Wisconsin
In Wisconsin, its law went into effect in 2017 and is slightly different from those in Iowa and Minnesota:
Texting while driving is against the law for all drivers
Hand-held or hands-free cell phone use is prohibited for any driver with a probationary license or instruction permit, except to report an emergency
No driver may use a hand-held mobile device when driving through a road work zone, except to report an emergency
Conclusion
Safety-conscious employers should review the laws in their state regarding cellphone use and driving, and ensure employees understand the dangers of distracted driving.
If you hire a subcontractor that lacks the proper workers’ compensation coverage — or doesn’t qualify as an independent contractor — it could put you at risk for liability if a work injury occurs, depending on which state the work is being performed in.
Here are some tips to avoid this situation, where applicable:
Confirm that the subcontractor is an independent contractor as defined by your state’s laws
If the subcontractor uses employees, ask for a certificate of insurance as proof of workers’ compensation coverage
Subcontractors with no employees can choose whether to purchase workers’ compensation insurance for themselves in most states. If they do have coverage, ask for a certificate of insurance for verification. Note that certificate of insurance verification alone does not qualify a subcontractor as an independent contractor. They still must meet all of the state’s criteria.
If they don’t have coverage: Request a copy of the subcontractor’s independent contractor registration form if applicable in your state. Some states have a registration process for independent contractors, and some don’t. Otherwise, ask for a copy of the subcontractor’s current license.
Note that a contractor registration form alone does not qualify a subcontractor as an independent contractor. You should also:
Check to see that the subcontractor is registered with the state as a business entity
Request a Certificate of Insurance for General Liability covering the dates the work was performed with limits of at least $300,000
Other considerations
Employers must also be aware of their respective state requirements. Every state is different, but in most cases, for a worker to be considered an independent contractor for workers’ compensation purposes, the worker must have:
Control over how the work is performed
Ability to realize financial loss or gain based on how a project goes
Ownership of equipment to complete the job
Compensation on a per-job basis
These are just some basic criteria, and most states have additional requirements beyond these. Get details through your state’s department of labor. For example, the labor departments in Minnesota , Wisconsin and Iowa provide additional information online.
There are also industry-specific considerations. In Minnesota, for example, many job sites require drivers in varying capacities. There is a statute that defines independent contractors in the “trucking and messenger/courier industries,” but those industries are undefined. An operator of a car, truck or van is deemed an employee unless all criteria are present. These include:
Owning or leasing the vehicle
Being responsible for the maintenance and all related operating costs
Being compensated based on the work performed, and not an hourly basis
Being substantially responsible for the means and manner of performance
Having a written contract specifying the relationship of independent contractor
A general contractor should assume any driver will be deemed an employee unless all of the statutory criteria are met.
Your agent can help
Lastly, if you need help determining whether a subcontractor is an independent contractor or employee, ask your agent for guidance.
They can help you understand the implications to your workers’ compensation coverage.
Recently released reports on workers’ compensation market share show that SFM continues to garner more business in its core states.
The 2024 figures were issued by SNL Financial in April. SNL, a data analytics firm within the S&P Global organization, issues an annual insurance industry study that compares market share and ranks carriers within each state of operation.
SFM’s carrier ranking in its top five states, based on 2024 written premium:
Minnesota – 1
South Dakota – 3
Iowa – 6
Nebraska – 7
Wisconsin – 10
At the same time, SFM’s 2024 market rank also increased in its three newest states: Kansas, Indiana and Tennessee.
“We’re growing, and the good news is we’re really growing in all eight of our core states, but we’re also growing profitably and selectively in those states,” said Mike Happe, Senior Vice President and Chief Marketing Officer. “The nationwide work comp market volume actually declined last year, so it’s promising to see that we’re maintaining that upward trajectory.”
SFM hit a new milestone by making the top 10 in Wisconsin, and SFM’s 2024 market rank increased by four spots in Kansas, eight in Indiana and 11 in Tennessee.
“Today, nearly half of SFM’s business is from outside of Minnesota. SFM is proud of our sustained success in recent years, especially in our newer markets,” Happe said. “In addition to maintaining the lead we’ve held in Minnesota for over 20 years, it’s fantastic to see strong growth coming from our other core states.”
Meanwhile, SFM continues to look for opportunities to pick up business that’s being displaced or facing challenges in the market.
“Especially in our newer states, agents are getting to know us and appreciate the advantages we offer,” said Mark Lewis, Team Business Leader. “We’re seeing excellent results as SFM’s reputation for unmatched customer service continues to spread throughout our newer markets.”
SFM is off to a good start through the first six months of the year, and with a strong July expected for new business, we are looking to maintain that momentum through the next quarter.
Written premium is close to plan year to date, and new business is on plan, as well, at about $13 million. Premium audit additional is solid at more than $6 million so far this year. However, pricing is down 6% through the end of June, which was slightly more than projected.
“Despite the continued market challenges in workers’ compensation insurance, SFM and our agency partners have continued to grow our book of business and sustain our excellent client retention rate of over 95%,” said Steve Sandilla, Sr. VP and Chief Business Officer. “We’ve had a good start to the first half of the year and are planning to make the second half just as robust.”
Following a mild winter in the Upper Midwest, and subsequently fewer slip and fall claims, claim frequency was looking very good for the first six months of 2025. Still, though claim severity is within projections, SFM has increased that range in recent years following a trend of more surgeries and recovery time due in part to an older workforce.
“SFM’s results so far this year mirror our philosophy of steady, measured growth,” Sandilla said. “As we look to build on a good first half of 2025, we want to remind our agent partners that we look forward to working together to generate new business.”
The results from SFM’s recent Agency Partner Survey are in and show nearly all respondents were satisfied with SFM (93% “extremely” or “moderately” satisfied) and 91% said SFM is “easy” or “very easy” to do business with.
When asked about the reason for their satisfaction rating, respondents most often cited SFM’s customer service and user-friendliness. Additionally, 75% of respondents said they wanted to recognize an SFM employee for excellent customer service.
“We’re extremely proud of the results of this survey,” said Steve Sandilla, Sr. VP and Chief Business Officer. “At SFM, we take customer service seriously, and it’s terrific to hear that our agency partners gave us such high marks.”
SFM’s underwriting staff was also regularly cited as a reason for overall satisfaction. Specifically, one respondent said underwriters are knowledgeable, responsive and focused on customer service. SFM’s website, processes and technology were noted as strengths by those who responded to the survey, as well.
“While we’re pleased with the survey results, we will continue to look for ways to improve in the future, and we will take specific areas of improvement seriously,” Sandilla said. “In fact, we received comments in the survey about upgrading the billing information in SFM Agency Manager. We’d already had a project to address that underway, and the enhancements went live in June.”
SFM appreciates the time agents took to provide their feedback, and those comments provide us with better ways to serve our partners.
Nearly 600 agents responded to the survey, which was distributed in March 2025.
