SFM recently hosted another educational webinar for our policyholders and agents. Titled “The Foundations of Hiring and Onboarding,” it’s still available for you to view.
In the webinar we discussed how establishing best practices for hiring and training new employees can help businesses and their workers succeed in the long run.
Head to sfmic.com/webinars to watch the webinar recording, and to view previous webinars and quick excerpts on work comp topics including loss prevention basics, winter slips and falls prevention, best practices for injury reporting and return to work, a breakdown of work comp benefits, avoiding litigation, and much more.
SFM’s online resource catalog offers a wide range of educational items designed to help policyholders prevent injuries, manage their claim activity and learn more about workers’ compensation. Also included are materials to help agents market their accounts with SFM.
A handout that explains how each state has its own workers’ compensation requirements, which can apply to anyone who works, lives, travels or is hired in that state, as well as some of the factors that go into determining whether employers have the proper coverage.
Based on independent research and SFM’s claims data, winter slips and falls put workers at a high risk of injury. This resource highlights specific steps that employers and employees can take to reduce the chances of injury.
Part of the slips and falls series, this resource generates awareness of slips and falls hazards and promotes safe processes. It also encourages employees to pick the safe route and not take shortcuts.
This packet includes all the tools you need to prevent winter slips and falls. It features tools for supervisors, a campaign activity sample, traction footwear information, training tools and penguin posters, table tents and more.
Encourage your policyholders to download these resources from SFM’s online resource catalog and visit the site often for the latest materials.
SFM is introducing multi-factor authentication and new password requirements on March 14 to enhance your SFM Agency Manager (SAM) account security.
Setup process available starting March 14
To prepare for multi-factor authentication, you’ll have the opportunity to confirm your email address and mobile number when you log in to SAM, beginning March 14.
You’ll also be prompted to reset your password if it’s under 12 characters to meet the new password length requirement. Once you’ve reset your password, you won’t be required to change it again for a year.
After setting up multi-factor authentication, you’ll be prompted to enter a 6-digit verification code sent via email or text to log in once every 30 days. You’ll also need to enter the verification code whenever you clear your cookies or switch to a different browser or device.
Separate accounts advised for anyone who needs access
As part of the rollout of multi-factor authentication, we’re also asking customers to set up individual accounts for anyone who needs access to SAM, as sharing accounts will become more difficult.
To add accounts, contact your agency’s SAM administrator.
SFM is making upgrades to its online MyPayroll system with new features and a streamlined process to make it even easier for policyholders to complete their annual premium audit.
The enhancements are expected to go live soon.
For agents, the most notable improvement is that they will receive an email notification when policyholders submit their payroll audit. This will allow agents to keep track of audit status more easily.
“We’re excited to roll out these enhancements to SFM’s MyPayroll system,” said DeAnne Misgen, Premium Audit Team Leader. “We already have strong reviews of our premium audit system, and these upgrades serve as another example of SFM’s commitment to improving the customer experience.”
For policyholders, the new features include:
The ability for users to securely upload multiple documents at once using a drag-and-drop interface
Email notifications in addition to physical letters about premium audit deadlines
Users can add documentation to their audit after it’s been submitted
Meanwhile, the updated MyPayroll will also allow users to use the system even after they have missed their payroll audit deadline and received notice of pending cancellation.
New MyPayroll users
With the enhancements to MyPayroll, a wider range of policyholders will be able to complete their audit using this method, including some policyholders who previously completed their audit in person or via email only. This will give them more control over their audit process, allow for self-service and eliminate the need to schedule an SFM representative each year.
First-time users should find the process smooth and intuitive, and such policyholders will still have access to SFM’s support team and resources.
Again, the upgrades to SFM’s MyPayroll system go into effect during the first quarter of 2024. If you have any questions, please contact your SFM underwriter.
Employers insured by SFM have an important option when it comes to reporting payroll and managing premium payments. SFM’s pay-as-you-go wage reporting system allows policyholders to make premium payments that match with payroll throughout the year.
The pay-as-you-go option is available to any SFM policyholder with at least $1,000 in annual premium, and it’s especially valuable for businesses that experience fluctuations in staffing throughout the year.
SFM has offered this capability for several years, and it’s gaining popularity with employers. Our pay-as-you-go option offers the following features:
Enrollment in pay-as-you-go is available at policy inception, on renewal or during the policy year
Account setup requires little or no collateral deposit
Payments can be made by mail or online
Pay-as-you go users can request automated recurring payments
Users have digital access through SFM’s CompOnline policyholder management system
Remember, pay as you go policies are still audited just like any other SFM policy, to verify the correct payroll figures were reported
To learn more about how pay-as-you-go wage reporting can make life easier for your policyholders, contact your underwriter or visit the pay-as-you-go wage reporting page.
As rates for other lines of insurance climb, workers’ compensation rates are steadily decreasing.
“Consistent with recent years, we continue to see the rates in our core states of operation going down in 2024,” said SFM Business Development Specialist Cody Allen. “The latest workers’ comp rates throughout our territory currently range between -6.3% and -12%.”
Why are rates going down?
The explanation for this positive trend is simple – workers’ compensation claim frequency has declined for all but two of the past 20 years, according to the National Council on Compensation Insurance (NCCI).
There are a number of key reasons why we’ve seen reduced claim frequency over time, including:
Technological work practices: Employers have found ways to leverage automation, mechanical assistance and other technology to reduce the risk of injury for their employees.
Management practices: Employers are putting more energy and attention toward better hiring practices and return-to-work strategies.
Safety programs: Employers are also investing more in safety training and hazard reduction.
Meanwhile, medical utilization trends are also helping to control workers’ compensation losses. For example, moving toward more outpatient procedures and generic drugs has had a positive impact on medical costs.
The workers’ compensation industry has had significant reserve redundancies over the past five years, and is currently estimated at $17 billion, an all-time record, according to NCCI. The possible release of these reserves only improves carriers’ results.
The combination of claim reserves possibly being released, claim frequency continuing to decline, medical inflation remaining under control and payroll increases work together to drive rates down.
Future challenges to positive trends
There’s not necessarily an end in sight for these positive industry trends, but there are some future uncertainties that could be looming:
An uncertain economic environment
Labor challenges, including an aging workforce and competition for employees, which can lead to more turnover (newer employees often have a higher frequency of claims)
Peter Lindquist has been part of the legal team at SFM since 2018. Prior to that, he practiced for four years in the areas of workers’ compensation defense, general civil litigation, and employment law. We asked Lindquist to share a little bit about his background and role.
Tell us a little bit about your background.
I’ve been with SFM’s in-house law firm for just over five years now. I got into workers’ compensation and law because my dad was a defense attorney handling a lot of workers’ compensation and employment law issues.
Ever since I was a kid I worked at his office. I started flipping copies when I was younger. Then when I was in college, I started doing more substantive stuff and that led me to go to law school.
I practiced and worked with my dad for four or five years doing work comp and employment law. Then I decided it was time to spread my wings and found my way to another firm and then to SFM.
How would you describe your role in a nutshell?
I kind of have two jobs. One of them is to represent SFM and its insureds in litigated workers’ compensation claims. That’s my primary role.
But I’m also a resource and adviser to SFM’s claims adjusters, medical-only reps and policy holders when they have non-litigated claims. That’s something that SFM does really uniquely compared to when I was in private practice and what I’ve heard of other companies that have in-house law firms.
Also, there’s a strong integration between our in-house law firm and the Claims team. Claims adjusters can walk down to our office or call us up any time they have questions to talk to us. We’re not just litigating claims.
How is SFM different from other companies you’ve worked with?
That integration piece is a huge part of it.
I found it difficult in private practice to strike a balance between being an advisor and providing good and candid advice to clients; and also being a business person and having to think about how to please clients and get return business. I also hated having non-communicative clients that I didn’t have a direct line to. I don’t see either of those as issues at SFM.
We’re colleagues and we can speak directly and frankly about the claims we’re handling, and people are responsive.
What about your job is particularly rewarding?
I do really enjoy the times we’ve had in meetings with policy holders, especially small business owners who are new to work comp, where we kind of give them the work comp 101. We do a fair amount of that.
We’ve got a lot of big employer entities that know their stuff but getting to work with those smaller entities that don’t know it as well is rewarding.
What do you like about your job?
I like getting to explain things and help people solve problems.
I also like the problem-solving part of the litigation and day-to-day side. Every new claim that comes in is like a puzzle. You get to look at all the pieces – what are the facts, what are the issues, what does the medical report say? Then you start using those to paint a picture about the case. I really enjoy that part of it.
What’s most challenging about your job?
Litigation is stressful and time-consuming, and has constant deadlines to meet. And you have to work hard to keep a cool head in contentious situations, and in dealing with difficult personalities.
What words of wisdom do you have for small-business employers?
Communicate. Remember that with SFM you’ve got so many resources – claims adjusters, med reps, doctors, attorneys. Communicate with us, use us. When you’ve got an active claim, keep us in the loop as to what’s going on. We’re a team and we should work as a team.
Tell us a little bit about yourself.
I live in the northwest suburbs of the Twin Cities. I’m married and my wife and I have an 8-month-old at home, and that’s the biggest thing in our lives right now.
Outside of that than that, I play guitar in a couple of bands. My three younger brothers and my dad are all musicians, too, so that’s a big part of our family gatherings and activities.
Dave Kaiser doesn’t have a singular moment that stands out during his time with the SFM Foundation.
“The moment for me happened every year,” Kaiser said. “It was when I would speak in front of everyone at our annual golf events. There would be 250 people in a packed room, and we’d be introducing the kids and you could feel the energy in that room. You could understand the whole reason why you were doing this. That was special.”
Fifteen years after co-founding the SFM Foundation, which provides college scholarship funding for families affected by workplace injuries, Kaiser stepped down as board chair on Dec. 6, 2023. While it was partly due to SFM Foundation bylaws, there was another reason.
“Honestly, it was also time,” he said. “It was time for someone else to do this and give them that opportunity. Fifteen years is plenty for anybody.”
Over those 15 years, the SFM Foundation has awarded $3.7 million in scholarship funds.
Origins of the SFM Foundation
Back in 2008, Kaiser had heard of an organization in Colorado that provided scholarships to the children of injured workers.
He told Bob Lund, former SFM President and CEO, a similar nonprofit would be a good idea for the company.
“We saw how successful it was and also how it fit so well into our organization. We thought it would give employees something to be proud of,” Kaiser said. “We’re giving back to the same community that we work hard to provide good outcomes for.”
Aside from heading up the SFM Toys for Tots program, Kaiser had never had any experience with a nonprofit. He made some calls to officials with the Colorado group, spoke to some lawyers and “boom, we had a foundation.”
A board of directors and volunteer team was established to run the SFM Foundation, which started with a golf fundraiser because Kaiser had experience at such events.
In its first year, the SFM Foundation provided $57,000 in scholarship money. This year, it was $500,000. And the SFM Foundation is among the top organizations in the country providing similar philanthropy.
SFM Foundation successes
That growth over the past 15 years benefits more than just the scholarship recipients.
“The mission was to impact not only the kids, but also the families,” Kaiser said. “These families have been through some really awful things. The kids’ grades tend to drop. And the families are often financially strapped because they lost their primary breadwinner.”
Those families have gotten to know each other over the years and attend SFM Foundation events.
“You saw this huge community being built,” Kaiser said. “Since the third year, we typically sell out the golf event in February because everybody wants to show up to it and they want to be part of that community. That’s why you do it – you see how you’re impacting the lives of other people.”
That sense of community and hope is big for Kaiser. “Bad things happen but there are also good people out there,” he said.
Meanwhile, Kaiser noted how SFM and its employees have embraced the organization, which has earned the Platinum Seal of Transparency from GuideStar – the top transparency rating a nonprofit can receive.
“It’s about finding people that share the same mission,” he said. “The people who have worked on this over the years – you have to find the people who have the same place in their heart and they’re all doing it for the same purpose.”
Those involved in the SFM Foundation don’t see the efforts as work. “When people view it as something that adds to their life, then you have magic,” Kaiser said.
There is a strong core of SFM employees who make the foundation go. Kaiser himself has held virtually every title in the organization over the years, and added that the foundation’s efforts also offer SFM employees the opportunity to take on new roles and challenges outside of their day-to-day job.
Of course, every promotion within the SFM Foundation comes with extra pay.
“Everyone’s used to my famous line – if you get a promotion I double your salary,” he said. “Well, no one got paid.”
Future of SFM Foundation
Kaiser credited the ability of the foundation’s leadership team in making the SFM Foundation a success. That group will continue to operate as it has in Kaiser’s absence.
Taking over as board chair is Andy Gebhard, SFM’s VP & Chief Communications Officer.
“Andy’s going to do fantastic,” Kaiser said. “I told the board – after 15 years, having fresh blood is a good thing. And having someone like Andy, who has so much creativity and shares that same emotional connection, it’s a perfect match.”
Kaiser thanked SFM Foundation volunteers, saying the organization is only successful because of them. “They are the heart and soul of the foundation,” he said.
He’s proud of how the company and its employees have adopted the organization and moved it forward, specifically mentioning:
President Linda Williams
Executive Director Lindsay Henningsgaard
Scholarship Director Debra Zorn
Event Director Kim Thelen
Circling back to the annual golf event that is so special for Kaiser. Is he even any good at golf?
“Not tremendous,” he said. “I can hit the ball a long way, I just don’t know where it’s going.”
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.
Peter Lindquist has been part of the legal team at SFM since 2018. 
