Author: Kris Janisch

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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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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Are undocumented workers eligible for workers’ compensation benefits?

Posted on by Kris Janisch

Are undocumented workers eligible for workers’ compensation benefits? It varies from state to state.

Undocumented worker rules in Minnesota

In Minnesota, undocumented workers are covered by workers’ compensation policies. According to Minnesota Statute, “aliens” are considered employees and are therefore eligible to receive benefits for work-related injuries.

This was first declared by a Minnesota Workers’ Compensation Court of Appeals case in 1999, the Gonzalez v. Midwest Staffing Case , which decided that undocumented workers are entitled to wage-loss benefits, even if they used false paperwork to get hired.

The specifics of undocumented workers’ eligibility for benefits have since then been more clearly defined. In the case of Rivas v. Car Wash Partners , an undocumented worker was injured and lost time from work. The employer offered a post-injury job, but only if the worker could provide proof that he was authorized to work in the U.S. Since the worker couldn’t offer legal documentation, he wasn’t able to return to work at the company, so the employer was able to stop paying wage-loss benefits.

Significant impact on your premium

Cases like this can have a significant impact on your workers’ compensation premium. Injured employees are entitled to receive benefits until maximum medical improvement or 130 weeks of benefits have been reached. Hiring smart can help prevent this from happening to you.

Rules in other states

Undocumented workers’ eligibility for workers’ compensation coverage can vary from state to state. If you’re not sure of your state’s laws, check with your insurance carrier.

 

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

How does a workers’ compensation claim affect my premium?

Posted on by Kris Janisch

One factor that determines your workers’ compensation premium is your loss history. This means that having a workers’ compensation claim can cause future premiums to increase.

Impact for larger organizations

At a larger organization, past claim costs are used to determine your experience modification factor (e-mod), a multiplier used to calculate your premium. If your claim costs are lower than average when compared with other organizations of similar type and size, then your e-mod will be lower than 1. That means it will reduce your workers’ compensation premium. On the other hand, if your claim costs are higher than average, your e-mod will be over 1. That will increase your premium.

The e-mod takes into account three years of loss history not including the most recent policy year, so that’s how long any given claim may affect your premium.

Impact for smaller organizations

If your premium is low enough (generally below $3,000 to $7,000 depending on the state), you may not be assigned an experience modification factor (e-mod). If you don’t have an e-mod, the workers’ comp underwriter will look at your loss history and use that information to decide whether your business is a risk he or she is comfortable writing. In some cases, an underwriter might be able to increase or decrease your premium based on loss history. This depends on state law and the insurance company’s underwriting standards.

Minimize the impact of claims by bringing employees back to work

One key thing you can do to minimize the impact of claims on your premium is bring employees back to work as soon as they are medically able. You could modify the employee’s job, offer reduced hours or offer a light-duty job until the employee is fully healed. For example, if you have a painter with an arm injury, he or she could answer phones or prepare estimates.

To save the most on future premiums, bring injured employees back to work before your state’s waiting period has kicked in if possible. (This is three to seven days depending on your state.) If you do this, the claim will be considered medical-only, so only 30 percent of the claim costs will be included in the e-mod calculation.

In addition to the cost savings, bringing employees back to work as soon as possible helps employees maintain their mental and emotional well-being, and improve their financial stability. It’s not only the smart thing to do, but also the right thing to do.

 

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

Letter from the President: Another strong year for SFM

Posted on by Kris Janisch

Terry Miller
SFM CEO Terry Miller

Even under growing pressure from package carriers, SFM had another successful year in 2024.

The achievements at SFM are a direct result of our relationships with our agent partners — through both policyholder retention and generating new business.

We continue to strive to be the leader in workers’ compensation coverage, providing unmatched service and working to keep employees safe while ensuring clients see reductions in their experience modification factor.

Our commitment to service excellence is the foundation for the success we share, and I believe the results will bear that out every time.

Highlights from 2024 include:

  • SFM’s policyholder retention level of 96% further demonstrates our industry-leading customer loyalty
  • Growth in our newer markets continues, particularly Indiana and Tennessee
  • Policyholder surplus growth larger than premium growth
  • We continue to make enhancements to our online portals, the SFM Agency Manager (SAM) and MyPayroll, making our processes smoother and more user friendly
  • We upgraded the SFM Resource Catalog, released new promotional videos and again provided our policyholders with valuable safety webinars

As we move forward in the new year, we want to build on the strength of our partnerships, write more business with our agent partners and keep the momentum we have built over the years. 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.

SFM realizes that strong financial results are important, but we know our unwavering commitment to customer service and doing right by all our stakeholders is paramount.

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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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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