Author: Kris Janisch

SFM safe driving webinar set for June 26

Posted on by Kris Janisch

Driving safety webinar graphicGet expert information and statistics on why being cautious behind the wheel is important during SFM’s upcoming webinar.

Register now for Driving Safety, an SFM webinar for policyholders, set for 10-11 a.m. CDT Wednesday, June 26.

During the webinar, SFM professionals will share their extensive knowledge on:

  • Why driving is the most dangerous work activity
  • Types of driving-related injuries
  • The claims process, including investigations
  • How to prevent driving incidents and establish a safe driving program
  • The consequences of a driving-related injury for the company and the employee
  • Much more, including a question-and-answer session at the end

To learn more about this webinar and view past webinar recordings, visit sfmic.com/webinars.

 

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New changes to Minnesota workers’ compensation law

Posted on by Kris Janisch

By SFM Corporate Counsel

The Minnesota Workers’ Compensation Advisory Council (WCAC) bill is officially law.

Gov. Tim Walz signed the bill on May 8, 2024. The legislation contains 50 sections with amendments to chapter 176, many of which are technical or cleanup provisions recommended by the Office of Administrative Hearings.

The following is a summary of key changes contained in the bill.

Maximum compensation rate

Effective Oct. 1, 2024, the maximum compensation rate will increase from 102% to 108% of the Statewide Average Weekly Wage (SAWW).

Average Weekly Wage (AWW) for agricultural workers

The AWW for agricultural employment will change to address the windfall that many employees have enjoyed from multiple employments during short-term agriculture employment stints. If an agricultural worker sustains an injury while working for two or more employers during short-term agricultural work, the AWW will be either the AWW of the employee’s other employment or the agricultural wage at 5 times the daily wage. The employee cannot claim wages from both agricultural work and from other employers.

This will be a significant change for policyholders in the agricultural business.

The change is effective Oct. 1, 2024.

Attorney fees

The maximum amount for statutory-contingent attorney fees will increase. Currently, the maximum attorney fee allowed is 20% of the first $130,000 of compensation awarded to the employee, for a maximum attorney fee of $26,000. The new law will change to 20% of the first $275,000 of compensation awarded to the employee, for a maximum attorney fee of $55,000. The change is effective for injuries occurring on or after Oct. 1, 2024.

Procedural changes

Answer

The timeline for filing an Answer to a Claim Petition or an Objection to a Request for an Expedited Hearing will change from 20 to 30 days. The change is effective Aug. 1, 2024.

Discontinuance of rehabilitation benefits

If a claim has been accepted and a rehabilitation plan has been approved, the employer or insurer may not discontinue rehabilitation services until notice has been filed with the commissioner of the Department of Labor and Industry and served on the qualified rehabilitation consultant, the employee, and the attorney representing the employee, if any. The notice shall state the date of intended discontinuance and set forth a statement of facts clearly indicating the reason for the action. Copies of whatever medical reports or other written reports in the employer’s possession that are relied on for the discontinuance shall be attached to the notice. The change is effective Aug. 1, 2024.

Clarification to Minnesota Statute § 176.238, notice of discontinuance

The amendment adds “or insurer” to all references of “employer” so the statute consistently reads “employer or insurer.” The amendment clarifies that employers or insurers can serve and file notices of discontinuances, file petitions for hearing, and be served with objection to discontinuance and court decisions. The change is effective Aug. 1, 2024.

Home remodeling

Home remodeling benefits will increase from $75,000 to $150,000, effective Oct. 1, 2024.

Medical record penalty

Effective Aug. 1, 2024, the electronic medical records payment provisions of Minn. Stat. § 176.135, subd. 7, will allow the commissioner to impose a permissive of penalty of $500, payable to the Assigned Risk Safety account, for violations of the statute.

Data export feature available in CompOnline

Posted on by Kris Janisch

If you use CompOnline® you can create customized reports on your workers’ compensation claims.

The CompOnline risk management system allows policyholders to manage claims online and access workers’ comp data in real-time. (It’s especially helpful for mid- to large-size employers who tend to get more claims.)

Reports can be filtered by policy term, claim type, claim status, location and claim cost, and exported as a spreadsheet. You can also choose from a long list of data points to include in the report, such as injury, average weekly wage, amounts paid or reserved and much more.

To run a report, click “reports,” and then click “data export” in the navigation bar that appears below.

 

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SFM’s Financial Strength Rating of A- (Excellent) reaffirmed by AM Best

Posted on by Kris Janisch

SFM Mutual Insurance Co. announced that its Financial Strength Rating of “A- (Excellent)” and Long-Term Issuer Credit Rating of “a-” have been reaffirmed by AM Best Rating Services, Inc.

AM Best issued this rating based on several factors, including its assessment of SFM’s balance sheet strength, as well as its operating performance, business profile, innovation and enterprise risk management. Before publicly disclosing this affirmation, AM Best conducted a thorough analysis of SFM’s finances and operations.

“Our annual review with AM Best gives us the opportunity to share our company’s story, and commitment to customer service, with experts from the global authority in credit ratings for the insurance industry,” said SFM President and CEO Terry Miller. “We view this annual rating as an important indicator of SFM’s long-term financial strength and stability.”

About AM Best

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the U.S., the company does business in more than 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com .

 

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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 will reach 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 set to be 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 percent of their pre-tax earnings to charitable organizations. Some of the state’s largest and most well-known employers are part of the program.

In 2023, SFM contributed to more than 200 charitable organizations. Strategic Business Units previously made many of the decisions about where funding would go. But in 2024, teams within SFM will have a bank of funds and decide which organizations receive charitable donations.

“I like that a lot of it goes through the employees,” said Dave Kaiser, SFM’s Senior Vice President and Chief Operating Officer. “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.”

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

“Being part of the Minnesota Keystone Program is great, but it’s just a good thing to be a good corporate citizen,” Kaiser said. “We feel a responsibility to support nonprofits and are proud of what SFM and our employees do for the communities we serve.”

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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Sarah Hunter promoted to VP of Operations

Posted on by Kris Janisch

Sarah Hunter SFM
Sarah Hunter, VP of Operations

Sarah Hunter recently took over as SFM’s VP of Operations.

A former attorney with more than a decade of experience in workers’ compensation, Hunter will work with SFM’s current Senior Vice President and Chief Operating Officer, Dave Kaiser, until his retirement at the end of 2024.

In her new position, Hunter will help drive SFM’s big-picture strategy and develop plans for the company’s future. She previously served as VP of Claims at SFM.

In 2018, Hunter came to LSH, the in-house legal firm at SFM. She was looking for a new challenge and wanted to learn more about the business side of work comp.

“I kind of always had SFM in my sights. They’re known as the best carrier in the state,” Hunter said. “I told myself if something opens up there, I’m going to go for it.”

Once she got experience in other aspects of the company, she looked for leadership opportunities outside of the legal side of SFM.

“In learning more about the business side of things, I thought, this is pretty interesting. When the VP of Claims position opened up, I realized it would be a good way to change up my career,” Hunter said. “I could still use my workers’ compensation experience and legal knowledge and training. And there’s a lot of strategy that goes into handling claims. I was able to use those skills that I’d developed as an attorney and it all worked out.”

Hunter said she enjoyed her time as VP of Claims but wanted to expand on her role at SFM and take on more responsibilities for the direction of the company.

“SFM is great that they’re willing to take chances on people. They have faith in them,” she said. “If you’re doing good work, they give you that chance and give you the support to be successful.”

In her time at SFM, Hunter said she has been impressed with how closely the company adheres to its values.

“They show us that they care and appreciate the work that we’re doing,” she said. “That’s everything from wellness programs and special events to compensation and how they treat employees. They know that our strength comes from the people with their boots on the ground.”

Her promotion went into effect in early April 2024.

Hunter grew up in St. Paul, Minn., and attended St. Scholastica in Duluth before earning a degree from Mitchell Hamline School of Law. She lives in Champlin, Minn., with her husband and two daughters.

 

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2023 Results: Customer service focus drives another strong year

Posted on by Kris Janisch

SFM recorded yet another excellent year in 2023, continuing its strong performance across all core metrics, from policyholder retention to new business and total written premium.

“We are proud of our accomplishments from the previous year,” said Steve Sandilla, SFM Senior Vice President. “Our focus on customer service has continued to foster our growth and sustained success.”

Highlights from 2023:

  • 96.3 percent policyholder retention rate
  • Added 7,257 new policyholders, resulting in new business premium of $34 million
  • Total written premium for the year: $271.6 million
  • Combined ratio was 96 percent – 12th straight year under 100 percent
  • SFM Foundation up to $3.7 million in total scholarships awarded

Other SFM numbers of note

SFM partnered with more than 3,000 independent agents in 2023 and closed out the year with its number of businesses served surpassing 50,000. That adds up to more than 500,000 covered employees.

Meanwhile, as a servicing carrier for the Minnesota Workers’ Compensation Assigned Risk Plan, SFM’s Superior Point division served approximately 13,400 employers, representing $20 million in premium. SFM has also been selected to serve up to 20 percent of the Wisconsin Assigned Risk Pool, accounting for 3,800 employers and $12.5 million in premium.

Additionally, SFM Risk Solutions provided third-party administration service to 32 self-insured clients in 2023, including two large groups with over 1,600 individual members. The service has not lost a client to a competitor in 16 years.

SFM also continues to expand. 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. SFM is still the No. 1 workers’ comp carrier in Minnesota.

Licensed in 34 states, SFM is now serving policyholders and partners with agencies in:

  • Minnesota
  • Wisconsin
  • Iowa
  • Nebraska
  • South Dakota
  • Kansas
  • Indiana
  • Tennessee

That ongoing growth and success can be attributed to many factors, Sandilla said, including SFM’s focus on serving customers and the relationships built between the company and agents.

“SFM’s agent partners know our reputation as the work comp experts in the industry,” he said. “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.”

 

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SFM resource catalog upgrades

Posted on by Kris Janisch

SFM recently made several enhancements to its resource catalog.

The resource catalog is a massive repository of useful information for agents and policyholders. It includes posters and training guides about safety, in-depth plans for employers to successfully report, manage and prevent injuries, and handouts with additional workers’ compensation tips and best practices.

The aim of the latest updates is to create a better user experience for policyholders and agents. Upgrades were based on feedback from internal stakeholders and research conducted by SFM’s User Experience team.

At a high level, the upgrades make it easier for users to discover the available resources and make the catalog more searchable. People are also able to more easily download and order resources.

“SFM has a wealth of assets to help our policyholders. These upcoming improvements will not only help users find and utilize our expertise, but hopefully reduce claims and bolster the bottom line for all of our stakeholders,” said Sara Goese, Senior Web Content Developer at SFM.

The upgrades to SFM’s resource catalog include a more user-friendly layout, the ability for people to see all resources at the click of a button, the inclusion of language filters and more.

Specifically, the improvements include:

  • Users will no longer lose their original search term when clicking in and out of resources
  • The catalog “remembers” where users were on the previous page when clicking into resources and returning to the previous page
  • Loading indicators were added to tell users the system is working on displaying their search results
  • All search results are displayed on the same page, eliminating the need for users to click through pages of results

“SFM takes great pride in helping our policyholders maintain safe and healthy workplaces,” Goese said. “Our resources ensure employers have the tools they need to implement programs and procedures that develop strong return-to-work strategies, stay on alert for potential pitfalls and enhance their ability to keep their workers productive and on the job.”

Lastly, the search functionally was improved across the website in general in addition to the resource catalog itself. Check out the latest updates.

 

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SFM continues to improve SAM system

Posted on by Kris Janisch

SFM recently made additional enhancements to its SFM Agency Manager (SAM) system.

The improvements will help streamline the process for agents and are part of a continual effort to make SAM more user friendly.

To begin, when an application is declined, users will automatically be directed to a declination page, with the option to print a declination letter. The page also displays contact information for the underwriter associated with the application.

“Agents have already loved it,” said Ashley Butcher, SFM Underwriting Technical Specialist. “They don’t have to wait for an answer and have had a really positive reaction to that update.”

Meanwhile, applications now require agents to enter either the company’s federal employer identification number or the employer’s social security number. This will allow agents to see whether it is a second application from the same business.

Other updates to the SAM system include:

  • A screen showing all open applications, regardless of whether they were entered through SAM, email or physical mail
  • Asking for loss history information earlier in the process
  • Other design improvements to make SAM easier to use

“SFM is committed to continuously improving our processes to help our agent partners and policyholders,” Butcher said.

As a reminder, SFM in mid-March 2024 added multifactor authentication to SAM. Learn more on our frequently asked questions page.

 

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SFM prioritizes in-house premium audits

Posted on by Kris Janisch

While agents often hear frustrations from clients when it comes to dealing with third-party vendors for premium audits, SFM continues to conduct nearly all audits in-house.

In a typical year, only about 1 percent of SFM policyholders’ premium audits are handled by a vendor partner. And in 2023, SFM completed more than 19,000 audits.

“A lot of times, policyholders are used to dealing with an employee who works directly for their insurer, and they can be leery of providing sensitive documents to an outside vendor,” said DeAnne Misgen, SFM’s Premium Audit Team Leader. “At the same time, for employers that prefer or are accustomed to an in-person audit, that can also pose a challenge, because most third-party audits are conducted remotely.”

SFM’s premium auditors also have years of experience in the field — some have more than 20 years of experience, and Misgen herself is approaching the 20-year mark in the industry.

Also of note, SFM continues to upgrade its MyPayroll system to make the process easier for users, and recent surveys show policyholders give the premium audit experience at SFM high marks.

Lastly, agents should remind policyholders of the SFM resources available to them regarding premium audits:

 

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