Author: Kris Janisch

2024 results: Customer focus drives success

Posted on by Kris Janisch

SFM continues to see growth beyond its home state of Minnesota, where it remains first in terms of workers’ compensation market share.

“Our relationships with agency partners outside of Minnesota are gaining more momentum with each passing year,” said Mike Happe, Senior Vice President and Chief Marketing Officer. “SFM’s reputation as the work comp experts has helped us develop and retain business in our newer markets.”

Below are SFM’s top five states and their carrier rank based on written premium (the rankings for 2024 will be released in the spring of 2025).

  • Minnesota – 1
  • Wisconsin – 15
  • Iowa – 7
  • Nebraska – 9
  • South Dakota – 4

Meanwhile, SFM’s growth in newer markets saw significant increases in Kansas, Indiana and Tennessee, and the company is putting additional resources into those states. Also of note, Cody Allen, SFM Territory Manager, has been elected to the governing board at the Indiana Compensation Rating Bureau.

Highlights from 2024 include:

  • 96% policyholder retention rate
  • Added 6,800 new policyholders, resulting in new business premium of over $26 million
  • Total written premium for the year: $255 million (excluding the Wisconsin Assigned Risk Plan)
  • Another year of an A- rating from AM Best
  • SFM Foundation up to $4.1 million in total scholarships awarded

“Despite seeing increasing claim severity, we have seen measured, steady growth, and SFM will continue that strategy in the years to come,” said Steve Sandilla, Senior VP and Chief Business Officer. “We continue to make the best outcomes for clients our primary focus and we are thankful for the trust of our agents and policyholders year after year.”

Other SFM items of note

SFM partnered with more than 3,000 independent agents in 2024 and closed out the year with its number of businesses served over 50,000. That adds up to more than 500,000 covered employees.

The company also retained the service contract for the Minnesota Workers’ Compensation Assigned Risk Plan (ARP), which renewed for another five years, and SFM’s portion of the Wisconsin program is increasing next year from 20% to 25%. Company leaders are working on growing that business in other core states for the future.

The Minnesota ARP, served by SFM’s Superior Point, handled 13,500 policyholders and $20 million in premium for 2024. In Wisconsin, SFM handled about 4,000 policyholders and $12.5 million in premium for 2024.

Also, SFM Risk Solutions provided third-party administration service to 32 self-insured clients in 2024, including four groups with about 2,000 individual members.

Lastly, SFM added Dr. Andrew Wilkins to its staff as Chief Medical Director on the Medical Services team in 2024.

 

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SFM CEO Miller named AASCIF President

Posted on by Kris Janisch

Terry Miller
SFM CEO Terry Miller

SFM CEO Terry Miller has been named the next president of the American Association of State Compensation Insurance Funds (AASCIF).

“When it comes to sharing new and old ideas on how to be a better workers’ compensation insurance carrier, I have not come across an organization close to as good as AASCIF,” Miller said.

He begins his two-year term as president starting in January 2025. AASCIF is an association of workers’ compensation insurance companies from 26 different states, plus eight work comp boards in Canada.

Miller has long been involved with AASCIF, attending his first meeting with the group in Montana in 1985. He has served the organization in a number of roles over the years, including:

  • Being a member of the group’s Audit and Data committee in the 1980s
  • Joining the Finance and Investment Committee in the 1990s, chairing that group in 2002
  • Previously serving as the AASCIF treasurer
  • Being an active member of the Executive Committee

“Terry exemplifies AASCIF’s values of service and sharing. I first met Terry at the AASCIF annual conference in Oklahoma City back in 2017. I chatted with him and learned that he was preparing to host the 2018 conference in Minneapolis. He shared his belief that AASCIF is the best organization going when it comes to sharing professional experiences and is an important part of the overall apprenticeship type model that many of its members utilize,” said Vern Steiner , President & CEO of the State Compensation Insurance Fund. “Through my term as president, Terry’s contributions have driven home his commitment to AASCIF, and I am confident that I could not be handing the presidency over to anyone who cares more about our organization.”

 

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Remind policyholders: winter safety must continue

Posted on by Kris Janisch

It’s that time of year again…

With winter in full swing — and the upcoming thawing and refreezing cycles in the months ahead — workplace safety should be paramount.

Be sure to remind your policyholders that just because spring is on the horizon, it doesn’t mean they can be any less vigilant about workplace safety.

Slips, trips and falls – the bottom line

Slips, trips and falls are a leading cause of workplace injury. They can be severe, leading to fractures, head trauma or worse.

The costs of covering these claims gets expensive. Not only can it negatively influence the employer’s experience modification factor, but it also impacts agency and carrier results. SFM estimates the average winter slip-and-fall lost-time claim to be between $50,000 and $55,000.

Weather is a major factor in workers’ compensation. Slipping and falling because of snow and ice is one of the most common workplace injuries.

Resources for policyholders

With a few reminders and some common sense, policyholders can help employees stay safe and reduce the potential for claims.

A few basic tips for you to pass along include:

  • Properly maintain your parking lot and walking areas
  • Encourage employees to wear appropriate shoes for the weather
  • In the case of a snowstorm, let employees work from home or reschedule if possible
  • Manage snow piles near walkways to avoid melting snow refreezing to ice

Policyholders should educate their employees about other winter safety measures, such as walking like a penguin, salting slippery areas, avoiding shortcuts, and stepping down, not out, of vehicles.

If you are looking for additional resources to help in these efforts, check out what’s available on our website or contact your underwriter.

 

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SFM attending industry events in 2025

Posted on by Kris Janisch

SFM is planning to participate in several industry events in the coming months, including:

 

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SFM underwriter accomplishments: Second half of 2024

Posted on by Kris Janisch

Here’s a look at the latest updates and milestones for SFM’s underwriting staff over the past several months.

  • Underwriting Technical team welcomes Underwriting Technical Analyst Trevor Dyreson
  • Carmen Klug promoted to Business Team Leader of Wisconsin Accounts
  • Ashley Butcher was promoted to Business Team Leader in Small Business Accounts
  • Mark Lewis promoted to Business Team Leader in Small Business Accounts
  • Amber Saurbeir promoted to Marketing Underwriting Specialist
  • Senior Underwriter Peggy Hengen retired after 30 years at SFM

 

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Schmidt promoted to managing counsel, SFM updates in-house law firm

Posted on by Kris Janisch

Aaron Schmidt
SFM Managing Counsel Aaron Schmidt

Following the recent promotion of attorney Aaron Schmidt, SFM’s in-house law firm is now Schmidt, Scharfenberg and Hollick.

Schmidt, who has been with SFM since 2015, is the new managing counsel at SFM.

“Aaron’s promotion to this role recognizes his client-centered approach to problem solving, and his interest in exploring and leveraging new technologies and processes to enhance the delivery of SFM’s in-house claims and legal services,” said Kathy Bray, Sr. VP and Chief Legal Officer at SFM.

Prior to joining SFM, Schmidt practiced law at private firms for several years in the areas of workers’ compensation, general liability and construction insurance defense.

“I’m excited to take on the Managing Counsel role at SFM,” Schmidt said. “We have so much opportunity for growth and sustained success on our team, and I look forward to continuing SFM’s highly respected reputation with the workers’ compensation bench and bar.”

With Schmidt taking on his new managing counsel position, John Hollick, Chief Defense Counsel, will dedicate more time to representing SFM and its policyholders in complex claims, as well as mentoring and educating claims personnel, and sharing his 35 years of experience through other projects.

“We are thrilled to begin this new chapter for SFM’s in-house legal team,” Hollick said. “SFM has the utmost confidence in Aaron and his talents as an attorney, and we are looking forward to having him enhance our delivery of legal services.”

 

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SFM webinar: De-escalation in the workplace

Posted on by Kris Janisch

De-escalation in the Workplace - An SFM webinar for policyholders | 2024View the recording of SFM’s November 2024 workers’ compensation webinar, De-escalation in the workplace.

Workplace violence has become an increasingly common concern for employers, and taking the steps to mitigate potential issues is vital.

The webinar brought in SFM experts to examine:

  • The four categories of workplace violence
  • Factors behind workplace violence and which industries are at higher risk
  • Elements needed for a successful safety program
  • Why a safety program should include de-escalation techniques

The webinar also covered the associated work comp matters related to de-escalation, and policyholders and attendees gained insights into:

  • The claims process once an injury is reported
  • How workplace violence injuries can be challenging for return to work
  • Employer costs due to workplace violence claims and litigation
  • Much more, including a question-and-answer session at the end

View previous SFM webinars.

 

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Governor proclaims Kids’ Chance Awareness Week in Minnesota

Posted on by Kris Janisch

SFM Foundation Kids' Chance of Minnesota and Iowa logoMinnesota Gov. Tim Walz proclaimed Nov. 18-23, 2024, as Kids’ Chance Awareness Week.

The SFM Foundation, also known as Kids’ Chance of Minnesota, is a nonprofit that provides college scholarships to children of severely injured workers so they can pursue college degrees.

“We’re proud Governor Walz has recognized the work of the SFM Foundation,” said Linda Williams, the foundation’s President. “The extra visibility of the proclamation will help us continue our mission of helping students whose families have been impacted by workplace incidents.”

Since its inception in 2008, the SFM Foundation has awarded scholarships totaling $4.1 million to nearly 250 students.

The SFM Foundation is an affiliate of Kids’ Chance of America in Iowa and Minnesota, and is known as Kids’ Chance in Iowa.

Fundraising events

The SFM Foundation recently wrapped up its fall fundraisers, an October bowling event in Iowa and a November “sip and shop” event in Minnesota, which also included an online silent auction.

Combined, the events raised nearly $30,000.

The foundation also hosts summer golf events in Minnesota and Iowa. This year, those events generated more than $160,000 for the organization’s scholarship fund.

“We are proud of our efforts to support these families, as they have endured difficult times and deserve something good,” said Andy Gebhard, Chair of the SFM Foundation Board of Directors. “Without the support of our sponsors, agents and others, we would not be able to help these young people. The foundation is doing great things, and it takes all of us working together to make it all happen.”

About the SFM Foundation

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. The financial burden of putting a student through college is real. Add a catastrophic injury into the mix and affording college is an even bigger challenge. We help education be more affordable for these students and their families by offering multi-year post-secondary scholarships.

 

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Can you terminate employees with an open work comp claim?

Posted on by Kris Janisch

Can you terminate employees with an open work comp claim?

The answer is — it depends.

While most states have laws that bar employers from terminating or disciplining an employee solely based on them being on workers’ compensation or in response to their experiencing a work injury, there are conditions under which such an employee may be let go.

For example, an employee hurt their back and files for work comp benefits. Then, the employer learns that worker is embezzling from the company. In that case, the employer would likely have just cause to fire that employee, for reasons unrelated to their work injury.

The key is to separate review of the performance concern from the work comp claim. While a work injury does not immunize an employee from discipline for performance problems, including termination, the nuances are important and the risk of retaliation is real.

In another example, what if an employee disregarded safety rules while driving a forklift and injured themself and another worker. They could still be disciplined for engaging in unsafe practices, if the employer was consistent in treating other similarly situated employees the same way. If the employee claimed that the discipline was in retaliation for the work injury or filing for work comp, the employer would have to prove the discipline was non-retaliatory.

If an employee feels they’ve been wrongfully targeted for exercising their protected right to file a workers’ compensation claim, they may in turn file a retaliation claim, which opens the employer in many states (including Minnesota ) to civil damages, including potentially punitive damages or penalties.

The cost of termination

It’s also important to note that termination of employment does not terminate the work comp claim. Some employers may try to reduce or limit the payable lost-time benefits on a work comp claim by terminating the employee for a reason unrelated to the work injury. However, this idea may ultimately make the claim more costly.

Depending on the circumstances surrounding the termination, temporary total disability and temporary partial disability benefits may still be available to an employee up to the statutory caps on the benefits. Therefore, terminating the employee may cost the employer more in wage-loss benefits compared to actively working with the injured employee to return to work.

Two other examples of benefits an employer could continue to pay after terminating employment are vocational rehabilitation treatments post-injury, and assistance in their search for a new job.

Plus, if the employer is found to have terminated the employee in relation to their work comp claim, they may be responsible for paying the employee civil damages, including punitive damages.

Other forms of retaliation

Retaliation against an employee with a work comp claim can take other forms besides termination, including:

  • Failing to provide a First Report of Injury Form at the time of injury or telling the employee they can’t seek medical attention for their injury
  • Demoting or transferring the employee to a less desirable position
  • Denying overtime, a promotion or pay increase
  • Reducing pay, hours or benefits
  • Unjustifiably low performance evaluations
  • Unexpectedly changing the employee’s schedule or work location
  • Intimidating the employee or creating an unpleasant work environment

Other resources

For employers who are experiencing challenges with problem employees and work comp, SFM has additional resources that may prove valuable.

Keeping problem employees on staff can increase workers’ compensation costs

Many times, these employees should have been disciplined or even fired before they reported work injuries. But once a workers’ compensation claim has been filed, disciplining or firing an employee can become much more complicated, and costly.

How to discipline employees who’ve experienced work injuries

Simply because an employee sustained a work injury does not excuse that employee from performing the duties and expected standards of the job.

Conclusion

Employers should ensure they understand the relevant statutes, and map out potential pitfalls, before taking adverse employment action against an employee on work comp.

This is not intended to serve as legal advice for individual fact-specific legal cases or as a legal basis for your employment practices.

Winter safety: Tips and resources

Posted on by Kris Janisch

It probably comes as no surprise that winter can be a hazardous time for employees.

Between slips and falls, challenging driving conditions, extreme cold, shoveling and more, there are several additional dangers to consider as the weather turns colder. However, there are a number of steps employers can take to prevent injuries among their workers.

That’s why SFM has compiled a wealth of resources to help keep employees safe during winter. Be sure to share these resources with your safety leaders, employees and others.

Winter-proof your workplace to stop slips and falls

Follow these steps to get your employees ready for the risks of winter weather and cut down on slips and falls in the workplace.

11 common sense tips for safe winter weather driving

Follow these tips to keep safe while driving in snowy and icy winter weather.

Prepare to prevent winter slips and falls

Winter slips and falls are among the most common causes of workplace injuries. As an employer, there’s a great deal you can do to prevent these injuries at your workplace.

Four quick tips for safe snow shoveling this winter

Follow these four tips to reduce the risk of injuries while shoveling snow, so you can get back inside safely.

Easy way to avoid winter falls: Step down, not out.

Using the “Step down, not out” method when getting out of a vehicle or stepping off a curb forces you to stand up or step flat footed, eliminating the chances of slipping.

Safety video: Avoid slipping this winter

Watch this video to learn how to avoid slipping and sliding this winter.

Lastly, be sure to check out additional items related to winter safety in the SFM Resource Catalog.

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