Month: January 2024

Nine expert tips that can lower your workers’ compensation costs

Posted on by Patty Busse

Many employers don’t realize how much control they can have over their workers’ compensation premiums.

Because premiums are based partially on your loss history, you can avoid future premium increases (and maybe even see some reductions) if you take steps to prevent injuries and ensure your claims are well managed.

Of course, it’s always a good idea to get ahead of potential injuries. Being proactive and building a safety culture in the workplace helps. This can include:

  • Creating safety committees
  • Implementing safety walks
  • Checklists to encourage safety
  • Regular safety discussions between employees and leadership

Below are some of our top tips for controlling your losses and, as a result, your workers’ compensation premiums.

1. Have a list of transitional jobs ready for when you need it

List light-duty, transitional jobs that fit within a variety of work restrictions.

That way, when employees are injured, you can easily identify jobs that fit within their restrictions and get them back to work quickly. Delays of even a day or two can increase claims costs substantially by triggering wage-loss payments that would otherwise be unnecessary.

2. Consider all your options to bring the employee back to work quickly

Bringing employees back to work when they’re still recovering can sometimes require a little creativity. A few options include:

  • Reducing the employee’s work hours or work days
  • Bringing the employee back in a different position at a reduced wage
  • Modifying the employee’s equipment or work area
  • Swapping tasks with other employees or reorganizing work within the injured employee’s group
  • Arranging for temporary work in a different area of the company
  • Creating a new lighter-duty job that will be transitional and temporary

Many employers don’t realize that if they bring injured employees back to work at less than their full pre-injury wage, their workers’ compensation insurance will make up most of the difference.

3. Have a relationship with an occupational health clinic

Quality of treatment counts for a lot in medical costs and outcomes.

To find a good clinic, ask officials there whether they have experience treating injured employees and accommodate return to work so the employee can heal while on the job. Ask what information they’ll need from you in the event of an injury, such as an injured worker’s job description.

4. Have a point person for return to work

It helps to have one person who is accountable for getting injured employees back to work as soon as medically possible.

This generally includes staying in contact with the employee, working with the treating doctor and involving the employee’s supervisor.

5. Ensure that employees understand and follow any work restrictions

When injured employees don’t follow their doctors’ restrictions, it can result in costly claim complications.

Take the time to go through employees’ restrictions with them and discuss any aspects of the job that could cause them to do work beyond what their doctor has permitted. Also make sure they know they should follow their restrictions both at work and outside of work.

6. Stay in contact with your injured employees

Let injured employees who are off work know that you are concerned about their injuries and recovery, that you value what they bring to the organization and that you are looking forward to their return.

Keep up on the status, expectations and return-to-work date for each injured employee. Have a plan and stay in touch with the employee, supervisor and claims representative to make sure things stay on track.

7. Report injuries right away

As soon as you learn of an injury, the clock starts ticking toward state deadlines for paying or denying benefits.

Reporting right away keeps you in compliance with these laws and regulations, and allows your claims representative to be responsive to your employees. Delayed reporting can result in longer-duration claims and higher costs. (See our injury reporting page for ways to report.)

Watch out for communications breakdowns. Employees and supervisors need to know who to contact when an injury occurs, and your organization’s point person for reporting claims needs to act with a sense of urgency.

8. Analyze past injuries

Anytime an injury occurs, conduct an accident analysis to identify what caused it and how similar accidents can be prevented in the future.

You can also use your loss history reports to help spot problem areas and identify opportunities to improve safety.

9. Develop a wellness program

Studies show there is a connection between health issues — such as obesity, diabetes and hypertension — and higher workers’ compensation costs.

But that’s only one benefit of finding ways to encourage wellness among your workforce. Encouraging healthy lifestyles can also raise productivity and reduce health care costs.

 

Originally posted May 2017

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

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Be on your guard for slips and falls all winter long

Posted on by Patty Busse

Even with the end of winter on the horizon, you still need to be wary of the dangers of slipping on the snow and ice.

And this is especially true at the tail end of winter. Warmer weather may lull you into a false sense of security, but thawing and refreezing can make roads and walkways even more treacherous.

Each year, hundreds of employees insured by SFM report falling because of snow and ice — it’s one of the most common causes of injuries.

In fact, about 674,000 cases of falls, slips and trips were reported by private employers 2021-22, according to the U.S. Bureau of Labor Statistics (BLS), with many of those incidents requiring employees to miss work because of the incident.

According to SFM claims data, 25 percent of ice- and snow-related falls occur in parking lots and 20 percent of slips and falls that occur in parking lots result in lost time from work.

Meanwhile, SFM estimates the average winter slip-and-fall lost-time claim costs range from $40,000 to $45,000. The costs — direct and indirect — mount quickly and can’t be ignored.

“Slips and falls during winter can be a major issue for worker safety,” said Director of Loss Prevention Lee Wendel. “But both workers and employers can take steps to mitigate the dangers and stay safe all winter long.”

Be on your guard for slips and falls all winter long

Staying safe from slips and falls

Employee injuries sustained in falls are costly. The National Institute for Occupational Safety and Health says workers’ compensation and medical costs associated with workplace fall incidents have been estimated at $70 billion annually in the U.S.

Despite the perils of getting around during winter, there are many preventive measures employers can implement to decrease the chance of on-the-job injuries.

  • Make sure gutters and downspouts flow away from walkways to avoid the dangerous freeze-thaw-refreeze cycle
  • Redirect any water flowing on walkways to avoid puddles
  • Treat walkways at high-hazard times and warn employees about potential hazards
  • Manage snow piles near walkways to avoid melting snow refreezing to ice
  • Plow snow below the grade of walkways to minimize downward flow
  • Repair walkways to eliminate uneven surfaces that collect water and ice
  • Designate safe paths of travel to and from building to discourage potentially dangerous shortcuts

The U.S. Occupational Safety and Health Administration (OSHA) reports that trips, slips and falls are the second-most common cause of workplace injury. Also, 20-30 percent of workplace falls result in a moderate or severe injury, including deep bruising, broken bones and concussions.

These incidents can be even more serious. According to the most recent data from the BLS, work-related fatalities due to falls, slips, and trips have increased in recent years:

  • 805 fatalities in 2020
  • 850 fatalities in 2021
  • 865 fatalities in 2022

About 20 percent of all workplace deaths are attributed to slips, trips and falls, per OSHA.

Employers must ensure walking surfaces at the workplace are free of snow and ice, according to OSHA safety standards.

Remind employees about winter hazards using SFM resources

With a few simple precautions, falls on snow and ice resulting in costly injuries can be easily avoided. Employee awareness is key.

“It’s important to keep reminding employees of the risks of winter slips and falls, and how to avoid them, throughout the season,” Wendel said. “We’ve tried to make that easy for employers by offering a variety of different resources.”

Consider some tips from SFM:

These tips and being aware of winter conditions can go a long way toward ensuring a winter spent upright and safe.

“Winter in the Upper Midwest often extends into early spring,” Wendel said. “By taking the necessary precautions and staying vigilant, workers can remain safe.”

 

Originally posted January 2018; updated March 2024.

What employers should know about marijuana safety and impairment policies

Posted on by Alyssa Rass

Laws regarding marijuana continue to expand across the U.S.

Employers may wonder what that means for creating and enforcing safety protocols and policies, especially in light of the recent passage of recreational marijuana laws in Minnesota, Ohio and elsewhere.

At the same time, there are also employment law protections to note in certain states.

Still, despite the legality of recreational marijuana in many states (24, plus Washington, D.C., as of this writing), employers can enforce a drug-free workplace. And the federal government still classifies marijuana as a Schedule I or illegal drug.

Navigating federal and state laws

An employer’s legal safety and impairment policy options may depend on the type of operations they perform, as well as their relationship with the federal government.

“Employers can prohibit use, possession, and impairment from marijuana products during work hours, on work premises, or while operating the company’s vehicle, machinery, or equipment,” said LSH Senior Defense Counsel Aaron Schmidt. “Employers can also take action if failing to do so would violate federal or state law or regulations or cause the loss of federal money or licensing-related benefits.”

Some states are creating employee protections for off-duty use, but they generally don’t apply to safety-sensitive positions or government contractors.

The variation and inconsistency in laws regarding medical and recreational marijuana use in the workplace make it particularly difficult for employers operating in multiple states to establish company-wide policies and practices. Therefore, it’s best for employers to consult an employment law or business attorney in their jurisdiction.

Tips to create and enforce safety programs and policies

The changing legal status of marijuana in the U.S. provides a great opportunity to refresh your safety program and workplace policies.

These four actions are a good starting point:

  • Understand the law
    If a state you operate within has legalized marijuana, whether medical and/or recreational, you must take the time to understand how federal and state laws affect your operation.
  • Revisit job descriptions
    Regularly revisit your job descriptions to see if they are reflecting the current equipment you have, any technologies you’re using and the scope of the jobs that may intersect with a position. Make changes, if needed, to reflect the reality of the workplace so you can hire the best candidates for the job, and then provide the training they need to perform the job safely.
  • Be fair and consistent with all employees
    If you declare your workplace drug-free, you need to apply that standard across the board, taking into consideration legal limitations on any blanket policy.
  • Document violations
    As impairment and legality come into question, the most important thing to come back to is the safety of the workplace. If someone is practicing unsafe behavior, regardless of any drug use, you should act on it. No matter the cause of or legality of the substance causing the impairment, you can address safety concerns, and it’s important that you do. You may need to address that behavior separately from the substance that may be contributing to it.

The growing acceptance of marijuana use in the U.S. has forced lawmakers and employers to address its use and adapt. Seek legal counsel when implementing workplace policies that may impact marijuana users due to the quickly changing legal landscape.

You can find a state-by-state summary with references to governing statutes at nolo.com .

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

 

Originally posted August 2023

Can you screen job applicants for prior workers’ compensation claims?

Posted on by Patty Busse

Employers sometimes ask whether they can screen job applicants for prior workers’ compensation claims.

Often, employers simply want information about previous claims in an effort to prevent reinjury. Even if this is the case, asking job candidates about past work injuries, disabilities or medical histories is illegal under the federal Americans with Disabilities Act (ADA).

At the same time, most states have anti-discrimination laws prohibiting such screenings. This includes human rights and fair employment laws in Minnesota, Iowa, Nebraska, South Dakota, Kansas and Wisconsin.

Employer can ask applicants about ability to perform required tasks

While employers are barred from asking applicants about prior workers’ compensation claims, they are permitted to request other types of information.

To begin, a prospective employer can ask in an interview or on a job application whether the applicant can perform the essential functions of the position with or without reasonable accommodation.

The employer can also ask the applicant to undergo a pre-employment physical examination after a conditional job offer has been made, as long as an examination is required of all applicants in the same category and it only tests for essential job-related capabilities.

If you require pre-employment exams in your organization, a written job description can be a valuable tool to the examiner.

Be sure to consult your employment law attorney to ensure your hiring practices comply with the laws in your area.

One final tip: Any records developed as part of the pre-employment process are required to be kept in a separate file from other personnel file information.

For more information, see SFM’s “Screening job applicants for prior workers’ compensation claims” Legal Advisory.

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

 

Originally posted May 2019

Why employee happiness is so important

Posted on by Patty Busse

Most U.S. employees are unhappy at work, according to a recent study from BambooHR , which showed a decline in employee satisfaction in over the past three years.

As an employer, should that concern you?

Yes! And here’s why…

An increasing body of research shows that a positive work environment fosters employee friendships, enhances personal well-being and ultimately benefits the organization’s bottom line.

Positive and virtuous workplaces lead to higher performance

To begin, the latest research from the University of Warwick says happiness made employees 12 percent more productive.

“The driving force seems to be that happier workers use the time they have more effectively, increasing the pace at which they can work without sacrificing quality,” said an economist who was part the team that conducted the study.

Beyond the increased productivity, there are other benefits of a happy workforce, including the employee motivation of peers, loyalty to the organization and enhanced creativity on the job.

Meanwhile, the post-pandemic work environment has forced employers to be more imaginative with fostering employee happiness. It’s not simply a matter of letting employees work from home.

Harvard Business Review in the fall of 2023 spoke with Adam Grant — psychologist, best-selling author, and chair of BetterUp’s Center for Purpose and Performance — in a piece about the importance of employee happiness. Creating a flexible work environment can take many forms, he said.

“Make a list of things workers want to be free of and things they want to have the freedom to do. And then you can play each of those out alongside choices about where we work, when we work, and how much we work,” Grant said in the article .

Still, as more employees work from home, employers should look to create an environment where employees feel connected. By encouraging certain behaviors in the workplace – among both front-line employees and leadership teams – employers can help workers feel happier.

A 2023 article from Nectar , an employee recognition software company, outlines some of the basics for employers:

  • Enriching employee friendships
  • Having managers measure progress by productivity, not time in the office
  • Being open to feedback at all levels of the organization
  • Learning about their employees likes and crafting office events based on those preferences

Also of note, data from Great Place to Work says employees are three times more likely to have a sense of well-being if they work in a fun environment.

Close friendships generate employee satisfaction

Friendships in the workplace are a big part of employee happiness.

Here is where the impacts of COVID-19 have had a residual effect. People in general have fewer close friends than they did before the pandemic, according to the American Survey Center .

And a 2022 piece from Gallup says having good friends at work is pivotal for employee engagement and career success. According to the article , employees who have a best friend at work are more likely to:

  • Support a safe workplace with fewer accidents and reliability concerns
  • Engage customers and internal partners
  • Get more done in less time
  • Innovate and share ideas
  • Have fun while at work

Job satisfaction directly correlates to having a best friend at work, according to the Gallup study.

Employee happiness keeps workers safer and aids recovery

So, what does all this have to do with workers’ compensation?

Creating a positive work environment can help your employees stay safer and have a smoother recovery if they do become injured. Some of the reasons for this include:

  • Workplace injuries are more common among new hires, so low employee turnover can help prevent injuries.
  • In a positive environment, employees are comfortable reporting workplace safety issues and taking the time necessary to perform their jobs safely.
  • When employees know their employers care about them, there’s less chance the claim process will become contentious if an injury does occur.
  • Workplace friendships create an added incentive for employees to return to work as soon as medically possible after an injury.

The numerous benefits to creating a positive workplace make a compelling case for building a supportive, affirming work environment.

 

Originally published May 2017

De-escalation tactics can prevent violence in the workplace

Posted on by Patty Busse

Employees in a variety of occupations can find themselves in situations with the potential to be exposed to violence at work. De-escalation tactics can be used to defuse volatile situations so they don’t reach the point of violence.

What is de-escalation?

De-escalation is one technique that can be used when confronted with violent or aggressive behavior.

According to professionals, de-escalation means “transferring your sense of calm and genuine interest in what an individual wants to tell you by using respectful, clear, limit-setting boundaries.” In short, de-escalation is the process of managing someone else’s behavior with your own.

How does the concept of de-escalation intersect with workplace safety?

As workplace violence remains a continuously growing threat, many industries are beginning to utilize the benefits of de-escalation training.

These industries include:

  • Education/academic settings
  • Healthcare
  • Policing/public service
  • Social work

Are there some general de-escalation tactics that apply universally?

While specific threats vary among industries, Jason Clausen, a Loss Prevention Specialist at SFM, notes that many de-escalation tactics apply universally.

“These tactics all require a state of calm, and operate around the cornerstone of active listening,” he said.

General de-escalation tactics that apply universally include:

  • Respecting personal space
  • Maintaining safe body positioning
  • Giving clear, concise direction
  • Setting obvious boundaries
  • Conveying empathy
  • Establishing positive tone of voice

De-escalation resources

De-escalation training can be helpful to employees in many fields. To learn more about de-escalation, view these SFM resources:

 

Originally published December 2020

Join us for the 2024 SFM Foundation golf events

Posted on by Kris Janisch

Mark your calendars — dates are set for the SFM Foundation’s 2024 golf fundraisers.

These annual events are the biggest driver of funds for the foundation, which provides scholarship money for families affected by workplace injuries.

  • The Minnesota event will be held Monday, June 10, at Prestwick Golf Club in Woodbury
  • The Iowa event is set for Monday, May 20, at Hyperion Golf Club in Johnston

To register, visit the SFM Foundation’s website . Space at both events is limited — register early to reserve a spot.

Can’t make it? No problem! Sponsorship opportunities are available, ranging from $750 to $10,000-plus.

“The golf events are the SFM Foundation’s largest fundraisers of the year and it’s great to see all the support from our sponsors come through year after year,” Executive Director Lindsay Henningsgaard said.

SFM Foundation golf fundraisers

The 2023 golf events in Minnesota and Iowa generated $125,000 and $25,000, respectively.

Those contributions helped the SFM Foundation award more than $500,000 in scholarship funds in 2023, with 16 students benefitting. More than 125 scholarship recipients have graduated since the SFM Foundation’s inception in 2008. Scholarships are awarded regardless of the workers’ compensation insurer involved in the claim.

But beyond the financial benefits for scholarship recipients, the golf fundraisers give the students’ families a chance to come together and bond.

“It’s so rewarding to see all the support from the families each year,” Scholarship Director Debra Zorn said. “We value their participation and appreciate the community they have built.”

Lastly, keep an eye out later this year for information about the SFM Foundation’s fall events for 2024.

About the SFM Foundation

Since its inception in 2008, the SFM Foundation has granted 232 scholarships totaling $3.7 million to help students pursue higher education thanks to the generous support from sponsors and donors.

The SFM Foundation provides scholarships for students whose parents were seriously injured or killed while working for Minnesota or Iowa employers. SFM Foundation is an affiliate of Kids’ Chance of America in Iowa and Minnesota and is also known as Kids’ Chance of Iowa. To learn more about the cause, visit sfmfoundation.com .

 

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Letter from the President: Following a tough act

Posted on by Kris Janisch

Terry Miller
President & CEO Terry Miller

Following up your best-ever financial year can be one of the most challenging things a company can do. Coming off the amazing success SFM experienced in 2022, I’m reminded how rare it is for a Super Bowl or World Series champion to repeat that success the following year.

Well, I am proud to say that SFM did back up its historically great year with a very good 2023 despite a bad winter slip and fall season, declining rates in all of our markets and added competition as multi-line carriers look to workers’ compensation for the answer to their continuing property insurance woes.

That last item is where SFM’s partnership with our independent agents really shines. When you choose to keep your accounts with SFM, we recognize that you are resisting the pressure from the multi-line carriers demanding the consolidation of the work comp with their collateral lines. Every time you honor your policyholders’ desire to stay with the work comp experts, it strengthens our mutual relationship. SFM’s policyholder retention rate remains the best in the business, and we recognize the enormous role our independent agency partners play in upholding that standard. On top of that, you have presented us with more new account opportunities than ever. SFM has responded by writing more new business in 2023 than we have ever recorded in a year ($33 million).

Just as SFM has been there for you through the unpredictability of the pandemic and oddities of the post-pandemic economy, we will be there for you and your policyholders in the years to come.

Since we only write workers’ compensation insurance, our success depends on doing it exceptionally well. We are proud to deliver on that commitment, and we count on our agency partners to help us get it done right. We’re grateful to the agents and policyholders who let us know in survey after survey that our unwavering devotion to service excellence has benefited them.

Key takeaways and highlights from 2023:

  • Continued 96%+ policyholder retention rate
  • Record new business
  • Audits and endorsements tracking ahead of projections
  • Impact from medical inflation continues to be mild
  • Paid losses better than expected, enabling reserve releases
  • Policyholder surplus growth larger than premium growth
  • Combined ratio on track for a 13th year in a row below 100%

Financial results are an important measure of performance, but we never lose sight of the fact that our success comes as a result of doing right by our all of customers. At SFM, we get there by living our mission every day, and we’re proud to partner with independent agents who believe in it.

“Inspiring safer workplaces
by protecting workers from harm
and helping the injured recover.”

Thank you for your continued support and partnership! We look forward to sharing success with you and your clients for many years to come.

 

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SFM continues growth outside of Minnesota

Posted on by Kris Janisch

SFM’s expansion to new states in recent years is paying off, as the company’s share of premium outside of Minnesota continues to grow.

While SFM is still the No. 1 workers’ comp carrier in Minnesota, and the state’s largest writer of workers’ comp since 1991, its ratio of premium and policy counts between its home state and others is shrinking. And that’s a good thing — SFM is diversifying and expanding its footprint in the realm of workers’ compensation insurance.

As of late 2023, that figure (Minnesota compared to other states) is about 60/40.

“We’re extremely proud to have maintained our status as Minnesota’s leading work comp insurer,” said Cody Allen, Business Development Specialist. “But to see our foothold in new states grow over the past few years has been remarkable. It’s a testament to our commitment to be the work comp experts and provide the best possible outcomes for agents, policyholders and employees.”

SFM expansion update

By way of background, several years ago SFM started expanding into a few states near its Minnesota headquarters:

  • Wisconsin – 2003
  • Iowa – 2009
  • Nebraska – 2009
  • South Dakota – 2007

In recent years, the company has moved into Kansas, Indiana and Tennessee.

As well as being the top workers’ comp carrier in Minnesota, SFM’s market share position in that first batch of states is:

  • Wisconsin – 15th
  • Iowa – 7th
  • Nebraska – 9th
  • South Dakota – 4th

The statistics come from SNL Financial, a data analytics firm within the S&P Global organization, which issues an annual insurance industry study that compares market share and ranks carriers within each state of operation.

Meanwhile, SFM policyholders are increasing in Kansas, Indiana and Tennessee. Partnering with local groups in each state, it’s anticipated that SFM will capture additional market share in these states in the coming years.

“What this really demonstrates is the value agents and policyholders see in SFM and its focus on customer service,” said Shawn Miner, VP of Regional Business. “We only do work comp and we do it well.”

Take Kansas, for example. SFM entered the state in 2020 and agency partners have helped the company write nearly 700 policies for $2.7 million in-force premium, along with hiring additional expertise within the state of Kansas.

The feedback from agency partners in Kansas about SFM’s service model and ease of doing business has been overwhelmingly positive, with several agencies saying SFM is their go-to work comp carrier and requesting SFM write some of their larger accounts.

“We are excited to provide this increased appetite to our partners so that they can offer our top-notch services to more Kansas employers,” Miner said.

SFM is always cognizant of agent feedback when it comes to its expansion efforts and will continue to listen to its business partners moving forward.

That ongoing dialogue has contributed to the growth at SFM. Long-standing partners know that SFM believes in steady, measured growth, which brings value to both established partners and newly appointed agents.

“We continue to be viewed as a leader in the work comp industry,” said Steve Sandilla, Senior VP and Chief Business Officer. “While SFM has long been a leader in the Midwest, the success of this latest round of expansion is a sign that we will continue to garner more market share in the years to come.”

SFM is now licensed in 34 states. You can view a complete state coverage list on the account types and territory page of the SFM website.

 

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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 $40,000 and $45,000.

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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