Month: February 2025

Avoiding litigation: ways to prevent disputes that land claims in court

Posted on by Alyssa Rass

When an attorney gets involved in a workers’ compensation claim, it can increase claim costs and harm outcomes for everyone involved.

CLARA Analytics found that attorney involvement with workers’ compensation claims led to an average 388% increase in claim costs. Additionally, litigated claims remained open 195% longer than non-litigated claims, and workers stayed disabled longer when they were represented by an attorney, according to the CLARA Analytics study . Higher claim costs can result in higher future workers’ compensation premiums, and longer disability times harm employers and employees alike.

Once an employee is represented by an attorney, they’re no longer able to talk directly with their claims representative, creating a disconnect when managing the claim. The contentiousness can also ruin the relationship between the worker and their employer.

There are situations where litigation is unavoidable, such as when there are complex issues regarding what caused an injury, said SFM Senior Defense Counsel Tom Davern. But many times, there are steps employers can take that can help prevent workers feeling they need legal representation.

Why claims go into litigation

There are a few common reasons why injured workers choose to hire attorneys, according to SFM Claims Specialist Martha Crump:

  • Fear of losing their job. They may be worried that they may not be able to perform their work duties due to the injury, or fear retaliation.
  • Lack of communication. If the employee is off work due to the injury, and no one is reaching out to them, this can make them feel forgotten and leave them with unanswered questions.
  • Pressure from coworkers. If an employee gets pushback or ridicule from coworkers while performing light-duty work, they may feel they need the added protection of a lawyer.
  • Not understanding the workers’ compensation process. For example, the worker might not realize that if a medical treatment isn’t approved right away, that doesn’t mean it is denied.

Common causes of litigated disputes

There are a few common causes at the heart of litigated workers’ compensation claims, according to SFM Defense Counsel Peter Lindquist. Those are:

  • Primary liability issues, such as disputes over whether an injury actually happened, or whether it’s compensable.
  • Medical disputes, such as whether the requested medical treatment is reasonable, whether the injury is a contributing cause, whether the treatment is permitted by statute or whether doctors agree on the recommended treatment.
  • Wage loss disputes, such as whether an employee’s refusal of a full-duty or light-duty job offer is reasonable, whether an ongoing reduction in earning capacity is related to the injury, whether a former employee is diligently job seeking, differing views on the extent of the injury’s impact, or conflicts over the wage rate and benefits due.

Other less common causes of workers’ compensation disputes are rehabilitation services (the nature, extent and cost of these services) and administrative issues, such as failure to file a claim or pay benefits on time.

Strategies to prevent litigation

There are a number of steps that employers can take to prevent the kinds of scenarios that cause workers to seek representation from an attorney.

Before an injury occurs, you can:

  • Implement or review policies and procedures related to work injuries. This includes clarifying how to report work injuries, and who will work with injured employees as they recover.
  • Develop a return-to-work plan. Think about how you will accommodate employees who have work restrictions so you can bring them back to work as soon as they are medically able. SFM provides resources to help you identify possible light-duty jobs.

After an injury occurs, you can:

  • Provide reassurance. Assure injured workers that you will help them get back to work as they recover and provide them with light-duty work if necessary.
  • Stay in contact. Have a designated person reach out to the employee on a regular basis to see how they’re doing and see if they have any questions about their claim or the return-to-work process.
  • Anticipate questions. Encourage the employee to always reach out to their SFM claims adjuster for clarification or questions.
  • Suggest using our online claim portal. Encourage the employee to register for the SFM Claim Connection portal, which will provide them with information on their claim and payments.
  • Maintain policies and expectations. Make sure the employee knows your expectations, such as regular updates if they’re off work.
  • Keep good documentation. Document the facts of the injury, how it was reported, witnesses, and any other details that might be important. Continue documenting any updates as the claim progresses.
  • Accommodate work restrictions. Provide light-duty work that fits the employee’s medical restrictions so they can return to work as soon as medically possible.
  • Take concerns about work restrictions or retaliation seriously. Make sure the employee is following any medical restrictions and promptly investigate any concerns about retaliation. Discourage and stop any ridicule from coworkers over light-duty work.
  • Discuss other options. Provide information on any options that may be available to the employee such as a medical leave, the use of the Family and Medical Leave Act (FMLA) and short-term or long-term disability benefits.
  • Think hard before terminating. If you’re considering termination, think through the possible ramifications before deciding. SFM and your agent can be resources to help you through these types of questions.

“We can’t overemphasize the need to communicate, communicate and communicate,” said Senior Defense Counsel Cheryl Bowsfield.

What if I have a litigated claim?

You can do all the right things, and still find yourself with a litigated claim. In these cases, it’s important to still follow the above steps to maintain a good relationship with the employee and help reach the best outcome possible.

 

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 published December 2022; updated February 2025.

SFM hires Chief Medical Director, Dr. Andrew Wilkins

Posted on by Kris Janisch

Dr. Andrew Wilkins
Dr. Andrew Wilkins, SFM’s Chief Medical Director

SFM recently hired Dr. Andrew Wilkins as Chief Medical Director.

In his role, he will assist in the management of complex claims, serve as an educational resource, and lead strategic initiatives to better understand what is driving a rise in medical severity and how we can best address it.

“I’m looking forward to taking a holistic approach to complex claims and trying to find solutions that best benefit the patient, the policyholder and SFM as a whole, backed by good medical practices and literature,” he said.

By way of background, Wilkins attended medical school in Arizona, followed by a residency in Emergency Medicine at the Medical College of Georgia while on active-duty service. Wilkins then joined the Army’s 101st Airborne Division, providing medical care as a Battalion Surgeon in the Middle East, Europe, and at Fort Campbell, Ky.

After transitioning to civilian practice, Wilkins most recently was a staff physician at the Minneapolis VA Medical Center. He serves on the state Medical Services Review Board, is board certified in emergency medicine, and has special interests in medical education and health care leadership.

Outside of SFM, Wilkins enjoys running on the Chain of Lakes, studying history, and spending time in his home state of Idaho. He lives in Minneapolis with his spouse, Bethany, and two young daughters, Olivia and Sasha.

Wilkins joined SFM in November 2024.

 

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Next SFM webinar to focus on preventing sprains and strains

Posted on by Kris Janisch

SFM strains and sprains webinarSFM regularly holds educational webinars to help policyholders manage the complexities of workers’ compensation issues. 

The next webinar, set for 10-11 a.m. Wednesday, June 25, is Preventing sprains and strains, an SFM webinar for policyholders. Register now.

Need some tips for preventing these injuries before the webinar? Here are related resources about the topic:

Also, you can check out previous SFM webinars on our website. The link here will give you access to all previous webinars, including:

  • Driving safety
  • Hiring and onboarding
  • Claims 101
  • Avoiding litigated claims
  • The fundamentals of a return-to-work program
  • Loss prevention 101
  • Preventing winter slips and falls

 

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HOM Furniture honors SFM’s Director of Loss Prevention

Posted on by Kris Janisch

Dan Lentz (left), Safety Manager/HR Representative at HOM Furniture, presents Lee Wendel, Director of Loss Prevention at SFM, with the retailer’s Service Representative of the Year award.
Dan Lentz (right), Safety Manager/HR Representative at HOM Furniture, presents Lee Wendel, Director of Loss Prevention at SFM, with the retailer’s Service Representative of the Year award

Lee Wendel, Director of Loss Prevention at SFM, was recently recognized by HOM Furniture, a regional retailer with locations in Minnesota, South Dakota, North Dakota, Iowa and Wisconsin.

The company presented Wendel with its Service Representative of the Year award.

Wendel said he was surprised with the honor. But company officials outlined the efforts that led to the award, including:

  • Completing site visits for about half of HOM Furniture locations
  • Discussing common issues and solutions with district managers and facilities personnel
  • Working with the HOM warehouse team to file and receive a Minnesota Occupational Safety and Health Administration safety grant for ergonomics improvements by leveraging video artificial intelligence (AI) analysis
  • Demonstrating and educating HOM leadership about technology in safety, such as virtual reality training, ergonomic position trackers and other AI solutions

“The leadership at HOM Furniture is truly committed to safety,” Wendel said. “They set goals and strive to make improvements. It’s a partnership between SFM, HOM safety officials and their agency partner.”

With a mixture of retail, warehouse and delivery services, HOM has several areas to monitor regarding safety. Company leaders take extra steps to ensure the safety of their employees, Wendel said, including having leaders talk with injured workers about what happened, helping them identify root causes and develop solutions.

“That’s one of the most effective things that they do,” Wendel said.

Notably, HOM Furniture’s safety efforts have halved both claims costs and workplace injuries over the past couple of years. The company has taken advantage of SFM’s safety resources and been proactive in developing safe workplaces and behaviors, Wendel said.

“I appreciated most that they said they feel as though I’m part of their team,” he said. “And that’s really my goal — to be someone they can rely on and to bring an outside perspective.”

Wendel leads SFM’s loss prevention team in developing best practices, resources and strategies. He has more than 30 years of experience in the field and has worked with hundreds of individuals to help support a safe work environment, including promoting safety culture in a wide range of businesses, schools and medical facilities. Additionally, he maintains relationships with vendors that support activities to help keep workers safe.

 

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Be on your guard for slips and falls all winter long

Posted on by Patty Busse

Throughout the colder months of the year, you must continuously 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 $50,000 to $55,000. 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
  • 885 fatalities in 2023

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 February 2025.

Bob Lund Scholarship reaches new milestone

Posted on by Kris Janisch

Starting in 2025, SFM’s Bob Lund Scholarship will go from freshman to senior. Literally.

In 2022, SFM established the scholarship and partnered with Wallin Education Partners , a Minnesota-based nonprofit that serves high-potential students with financial need.

This spring, a fourth student will be selected for the Bob Lund Scholarship. Once the next school year begins this fall, four students — freshman, sophomore, junior and senior — will see their college careers helped along by SFM. The plan has been to support four students at a time.

“It’s amazing to see how committed SFM is to supporting the community,” said Kim Burandt, SFM Senior Project Manager, who helps coordinate the scholarship program. “We take pride in being a good corporate citizen and supporting underserved populations.”

The Bob Lund Scholarship provides college scholarships through the Wallin Scholars program — which has a mission to support college and career success for high-potential students from low-income backgrounds — as part of SFM’s effort to invest in future leaders and introduce them to careers in the insurance industry.

In addition to the scholarship funds, Wallin provides students with 1:1 advisement and career support. The organization also assists students in applying for other scholarships and state funding opportunities.

At the same time, SFM provides the students with gift baskets to help them get through the final weeks of their schooling and distributes information about internship opportunities at SFM. Members of SFM’s HR team also attend Wallin job fairs.

Initially, the scholarship was aimed at students looking to go into the insurance industry — “Insuring the future was our tagline at first,” Burandt said — but it has expanded to business, finance or actuarial fields.

SFM tracks the students’ progress and Burandt meets with Wallin once a year to get updates. So far, all three students are doing well.

Spread out over the four years of schooling, Wallin is a “last-dollar scholarship,” which means the group can help cover remaining costs after other scholarships or state funding are applied, e.g., books, class materials and living expenses.

“It’s exciting to add another student to the Bob Lund Scholarship roster,” Burandt said. “SFM continues to demonstrate its commitment to helping students overcome barriers to higher education.”

The current scholarship students are:

  • Hideaki Lee (University of Minnesota)
  • Natali Iguanero Espinoza (University of Wisconsin)
  • Van Nguyen (University of Minnesota)

 

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The use of AI in workplace safety

Posted on by Kris Janisch

It might surprise employers to learn that the recent advancements in artificial intelligence (AI) have applications in workplace safety.

But this technology has been harnessed of late to expand the ability of safety leaders to train employees, test methods, develop best practices and more.

Imagine a piece of equipment a new employee will be using. Instead of training with the machine itself, employers can give workers the ability to “use” the device without the potential for injury. In this way, employees can get a degree of “on-the-job training” without risk.

“It’s exciting to envision the future applications for AI when it comes to workplace safety,” said Lee Wendel, SFM’s Director of Loss Prevention. “Already, some employers are utilizing the technology. Others are researching how it could be used. It’s fascinating to see and project how much it will develop moving forward.”

Wendel has embraced this evolution. He was recently honored by a regional furniture retailer for his safety efforts. Company officials noted his dedication to demonstrating and educating leadership about virtual training, ergonomic position trackers and other AI solutions.

At the same time, similar practices are being implemented elsewhere.

The National Safety Council has several real-world case studies related to virtual reality and augmented reality (AR). In one instance, a technology-focused defense, intelligence, security and infrastructure engineering firm used a VR program during employee orientation. The simulation involved identifying workplace hazards. The results included increased employee engagement, efficiencies by reducing the need for in-person trainers and, of course, a greatly reduced chance of injury during training.

Wendel said the speed, accuracy and breadth of the information some of these programs provide is impressive. Examples include:

  • Giving the software a photo of a workspace and having the program outline safety issues, whether those would result in an Occupational Safety and Health Administration fine, the frequency and costs of those fines, and how to address any hazards.
  • Uploading a picture of scaffolding where wood was used to frame up handrails. The tool will outline the risks and suggest ways to fix the problem.
  • Giving the software a jurisdiction-specific prompt, such as patient handling in a parking lot in Minnesota. The system provided state-specific laws to note, weather considerations and other information.

“Employers can even provide their company policies — maybe an area on a warehouse floor cannot be used to store items — and the tool will take that into account, along with any safety issues, when it comes back with the information,” Wendel said.

In November 2024, SFM Loss Prevention Specialists Jason Clausen and Toby Tortorilla discussed safety technology they are exploring at the Midwest Women in Safety Conference.

Tortorilla participated in a panel discussion relating to the future of AI in relation to the safety field. He was able to provide findings from the research that he, and a team of SFM Loss Prevention personnel, were involved in recently.

“AI can be used in many ways to assist us as safety leaders,” Tortorilla said. “It can help create safety programs and policies, assist with ergonomic assessments, perform compliance and behavioral based assessments and bring attention to real-time hazards through wearables, telematics and other electronic devices. The capabilities are truly limitless.”

Join us for the SFM Foundation’s 2025 golf events

Posted on by Kris Janisch

Registration is now open for the SFM Foundation’s upcoming golf events in Minnesota and Iowa.

The foundation makes college more affordable for families affected by workplace injuries by offering post-secondary education scholarships to children of parents fatally or seriously injured on the job while working for a Minnesota or Iowa employer.

Iowa’s event will be held Monday, May 19, at Hyperion Field Club in Johnston. The day includes lunch and golf, followed by a reception, program and dinner. People can also sponsor the event. Find details on the registration page .

The Minnesota golf event is set for Monday, June 9, at Prestwick Golf Club in Woodbury and follows a similar schedule to the one in Iowa. Find more information on the registration page .

In 2024, the two events raised more than $160,000 in total, with over 260 golfers hitting the links for the fundraisers.

“We’re always so thankful of the support of our agent partners, clients and others who contribute to our mission,” said Linda Williams, President of the SFM Foundation. “These golf events are not only a way to raise scholarship funds, but they also allow those involved to connect and build a community.”

About the SFM Foundation

The SFM Foundation was created in 2008 by SFM Companies, a regional workers’ compensation insurance group headquartered in Bloomington, Minn. The nonprofit is dedicated to easing the burdens on families affected by workplace accidents. Since its inception, the foundation has awarded 247 scholarships totaling $4.1 million. For more information, visit sfmfoundation.com .

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

 

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How to help employees combat sleeplessness

Posted on by Patty Busse

A lack of sleep is common in the U.S., with nearly 37 percent of people reporting they don’t get enough, according to the Centers for Disease Control and Prevention .

And employees who don’t get enough shuteye and more likely to suffer a workplace injury, reports the National Library of Medicine , which also says workers who do get enough rest have greater safety participation and safety motivation, and fewer accidents and injuries.

Risks of sleeplessness

When employees don’t get adequate sleep, injuries are often the result of:

  • Loss of muscle coordination
  • Increased risk of dropping things
  • Stumbling and falling
  • Impaired memory, attention, judgment and concentration
  • Difficulty making decisions, processing complex data and regulating emotions
  • Greater distractibility

What can I do?

As an employer, there are ways you can help ensure your employees are getting the recommended amount of sleep.

Teach your employees about the risks associated with insufficient sleep and how they can create healthy sleep habits.

Ways to combat lack of sleep include:

  • Have a consistent sleep schedule by going to bed at the same time every night and waking up at the same time every morning
  • Create a bedtime routine to help the body unwind and grow accustomed to a sleep schedule
  • Things like warm showers or baths, soothing music and noncaffeinated, herbal teas may help
  • Sleep in a cool, quiet, comfortable and dark room
  • Get outside during daylight hours to help reset your body’s natural sleep and wake cycles
  • Limit use of technology during the hours before bedtime. Most electronics use blue light, which decreases the body’s production of melatonin and boosts attention, making the body want to stay awake. Additionally, engagement in things like social media and email can make it more difficult to unwind
  • Get regular exercise
  • Avoid caffeine for at least six hours prior to going to sleep

You can also take measures to make sure your workplace isn’t causing sleep issues for your employees. Some suggestions include:

  • Limit shift work as much as possible
  • Minimize overtime, especially if it’s forced
  • Avoid permanent placement on the night shift
  • Give workers as much choice as possible for shift start times
  • Address stressful workplace conditions such as lighting, temperature, noise and access to food

While there may be a cultural expectation to sacrifice sleep, it doesn’t have to be a part of your organization’s culture. Emphasizing the importance of sleep will benefit your company and your employees in the long run.

 

Originally published December 2020; updated February 2025.

SFM expands charitable giving, reaches new milestone

Posted on by Kris Janisch

SFM has long had a goal to increase the percentage of its charitable giving to 2% of pre-tax profit.

And the company reached that threshold in 2024.

“SFM is proud of our commitment to giving back to the communities we serve,” said Terry Miller, President and CEO. “Reaching this milestone is a major accomplishment and further cements SFM as a leader in the communities we live and work — as evidenced by our corporate philanthropy.”

With the additional charitable funds issued in 2024, SFM has become a member of the Minnesota Keystone Program, which promotes corporate philanthropy by recognizing and honoring companies that donate at least 2% of their pre-tax earnings to charitable organizations. Some of the state’s largest and most well-known employers are part of the program.

“I like that a lot of it goes through the employees,” said Sarah Hunter, SFM’s VP of Operations. “Then they’re deciding how to give back to the community that’s close to them. It makes people feel more of a part of what we’re doing.”

She also noted that SFM recommitted to the Keystone program in 2025.

In addition to direct donations, SFM gives back in a number of other ways, including:

  • The SFM Foundation
  • Its internal Connecting to Communities (C2C) committee
  • External applications for donations
  • The Bob Lund Scholarship
  • Volunteer efforts

About the Minnesota Keystone Program

The Minnesota Keystone Program, administered by the Minneapolis Regional Chamber, promotes corporate philanthropy by recognizing and honoring companies that donate at least 2 percent of their pre-tax earnings to charitable organizations. In 1976, 23 Minnesota companies created this program (originally known as The 5% Club) to recognize and encourage charitable giving in the state. The commitment of Minnesota Keystone participants continues to serve as an example to other businesses, both here and around the globe, and to sustain Minnesota’s spirit of generosity and sense of community. Qualifying companies have an operating presence in Minnesota and donate cash or in-kind donations, including pro-bono services, and/or employee paid volunteer time. For more information, visit www.minnesotakeystone.org .

 

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