SFM Foundation board chair Dave Kaiser steps down after 15 years

Dave Kaiser
Dave Kaiser

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.”

Learn more about the SFM Foundation on its website.

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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SFM’s 2023 mid-year results: Strong premium development, competitive pricing, continued claim challenges

The first half of 2023 is in the books, and it’s already been a remarkable year for SFM in a number of ways. New and renewal premium results have been outstanding, customer retention continues to be very strong and claim activity is trending in the right direction as the year unfolds.

Premium performance: positive activity on all fronts

SFM has already seen excellent new business results in 2023, continuing the trend in recent years of exceeding expectations. New account development has topped $24 million, well ahead of plan and on pace to top last year’s remarkable growth. SFM is writing these new accounts across a widening territory that now includes eight core states (Minnesota, Wisconsin, Iowa, Nebraska, South Dakota, Kansas, Indiana and Tennessee).

Renewal premium also continues to be very strong, running significantly ahead of expectations through the first half of the year. Year-to-date renewals are more than $2 million ahead of projections. With these returning policyholders, SFM continues to demonstrate industry-leading customer loyalty – with policyholder retention remaining above 96%.

Premium audits, endorsements and retentions also continue to exceed expectations, resulting in significant additional premium generation throughout the policy year. Combined with the increases in new and renewal premium, this has allowed the company to set a new high-water mark for total written premium.

Coming off an already outstanding first half, SFM saw premium numbers leap upward again. In July, the company set a new record for premium in a single month, topping $40 million for the first time. Totals through the month of July showed written premium at nearly $169 million, which is $10 million above plan.

“As we navigate through the remainder of the year, we know that positive results like these come as a result of the excellent relationships we have with our agency partners,” said SFM Senior Vice President Steve Sandilla. “I’d like to personally thank our valued partners for continuing to renew their clients with SFM and providing us the opportunity to write new business with them.”

While premium is up, pricing is down

Premium growth like this is even more remarkable in light of the fact that overall pricing across the workers’ comp line continues to decline. Rate reductions across the states in which SFM operates continue to drive pricing downward.

“Pricing is down roughly 5% on our book as a whole but might vary depending on what state you are in,” Sandilla said. “Year-to-year we are sitting at a price reduction of 4.9%, and while this is 1.7% better than expected, pricing continues to be a challenge as we write accounts.”

Claim activity, from stormy to calm

With an increase in premium comes an increased exposure base for injuries and claims. With that expanded book of business, one might expect to see claim activity rise at a similar rate. To the contrary, SFM has seen claim frequency and severity well moderated throughout the year. Year-to-date claims have been close to SFM’s overall projections, with both frequency and severity trending strongly downward though the calendar year.

“We started off a little rough with a higher-than-expected number of snow and ice claims during the long and snowy winter,” Sandilla said. “Once the winter weather finally let go, those claim numbers began shaping up pretty quickly.”

Since April, claim frequency has reverted to a more predictable pace, which has helped overall results through the first half of the year. SFM’s combined ratio is tracking around 95%, which is on pace with the projections that were established going into 2023.

Agents play a critical role in preventing injuries

According to Sandilla, SFM relies on agent partners to encourage policyholders to keep their workplaces safe, especially during the winter slip and fall season. By spreading the word about winter workplace safety, agents can help prevent costly and potentially tragic injuries.

“We need our agents to remind their policyholders to take advantage of SFM’s safety resources to keep their employees safe,” Sandilla said. “Make yourself familiar with the valuable materials on our website and you can make a big difference in reducing injuries for your policyholders.”

SFM’s website offers hundreds of educational resources focused on making workplaces safer. These materials are available free of charge for agents and policyholders at sfmic.com. Popular resource topics include safety for new hires, back injury prevention and avoiding outdoor slips and falls. At this time of year, the latter category is particularly important with potentially dangerous winter weather approaching.

“Whether it’s the resources on our website or the conversations our underwriters have with agents every day, we do everything within our grasp to earn our customers’ loyalty,” Sandilla said. “When an agent brings a client to SFM, we understand that they’re trusting us to attend to that customer’s every need, and we’re grateful for every opportunity that gives us to succeed together.”

 

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Multi-factor authentication coming to CompOnline

To enhance security, SFM is introducing multi-factor authentication and longer password requirements for CompOnline users starting January 5, 2024.

Our CompOnline policyholder portal is typically used by larger employers who expect to have workers’ compensation claims.

“We’re pleased to offer our policyholders a higher level of security for their workers’ compensation claim and policy data,” said Senior Vice President and Chief Information Officer Chad Hagedorn. “We’re working hard to offer high security standards while also making the experience user friendly for our customers.”

Setup process available starting November 6

To prepare for multi-factor authentication, CompOnline users will have the opportunity to confirm their email address and mobile number when they log in, beginning November 6.

They’ll also be prompted to reset their password if it’s under 12 characters to meet the new password length requirement.

After setting up multi-factor authentication, CompOnline users will be prompted to enter a 6-digit verification code sent via email or text to log in once every 30 days. They’ll also need to enter the verification code whenever they clear their 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 CompOnline, as sharing accounts will become more difficult.

Policyholders who need to add accounts can either contact their CompOnline administrator or contact us.

Other portals moving to multi-factor authentication

We will be rolling out multi-factor authentication for all of our other online portals, including SFM Agency Manager (SAM), in the future, but release dates have not yet been set.

Learn more

To learn more about multi-factor authentication for CompOnline and other SFM portals, please visit our multi-factor authentication frequently asked questions page.

 

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SFM to host educational webinar for policyholders on hiring and training new employees

SFM will host another educational webinar for our policyholders and agents titled “Foundations of hiring and onboarding.”

Mark your calendars for November 15 from 10 to 11 a.m. and plan to join us as we discuss best practices for hiring and training new employees. Learn how establishing good fundamentals can increase employee safety and help your business succeed in the long run.

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

  • Hiring process dos and don’ts
  • The importance of vetting a potential new hire
  • Proper onboarding and safety training
  • How to handle performance issues post-hire
  • Much more including a question and answer session at the end!

Head to sfmic.com/webinars to register, and to view previous webinars and brief videos on work comp topics including winter slips and falls prevention, best practices for injury reporting and return to work, the lifecycle of a claim, a breakdown of work comp benefits, an explanation of experience modification factors, and more.

 

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Sign up for alerts in SAM

Did you know you can get email alerts to help you keep up with your clients’ claim developments?  Through SFM Agency Manager (SAM), you can get alerts about the following:

  • Submitted, closed or re-opened claims
  • Claim reserve activity (reserves are set or increased over an amount you specify)
  • Claim payments (payments made greater than an amount you specify)
  • Changes to claim status or litigation status
  • Policy cancellations
  • Policy renewal due in a specified number of days

Additionally, you have the option to set up alerts for whichever policyholders you choose.

To set up or manage your alerts, click on “manage alerts” in SAM. If you have questions, don’t hesitate to reach out to your SFM underwriter.

 

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Featured resources for agents and policyholders

SFM’s online resource catalog offers a wide range of educational resources 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.

 

Featured resources for agents

Make SFM your workers' comp insurer. It's the right choice.

SFM – the right choice for small business

A handout describing the benefits of breaking out work comp and making SFM your partner. It explains the benefits of a monoline carrier and illustrates SFM services that make us the right choice for small businesses.

The right choice in workers' compensation for schools

States where SFM provides coverage

Shows the states where SFM provides workers’ compensation coverage and the additional states we cover for employers’ out-of-state operations.

Visit the agent marketing materials page for more resources like these.

 

Featured resources for employers

Claim packet - What to do if someone is injured at work

Claim packet – What to do if someone is injured at work

If someone is injured at work, this packet gives employers the materials they need to report the claim and help the injured worker return to work safely and quickly.

Experience modification factor CompTalk

Employer liability limits

When employers purchase workers’ compensation insurance policies, a coverage called employer liability insurance is also included. This “Did you know” fact sheet provides basic information on this coverage.

Safety Orientation Success Guide

Ergonomic tips for working from home

This presentation addresses common sources of working at home discomfort, provides education and offers ideas to improve your home office space when working from home.

 

Encourage your policyholders to download these resources from SFM’s online resource catalog and visit the site often for the latest materials.

 

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SFM underwriter accomplishments

Here’s a look at the promotions, awards, retirements, and other milestones of SFM underwriters so far in 2023.

January

  • Heather Wylie transferred from the Special Investigations Unit to the Small Business Accounts team as an Underwriter
  • Willie Kirchoff transferred from Claims Representative to Underwriter on the Small Business Accounts team

March

  • Underwriter Patty Paulson retired after 38 years at SFM

April

  • Michelle Reif transferred from the Premium Audit team to the Small Business Accounts team as an Underwriter
  • Small Business Marketing Representative Mark Lewis made stops at 16 agencies as part of the “North Star Roadshow”

May

  • Andrew Miller joined the Iowa/Nebraska/Kansas Accounts team as a Marketing Underwriter
  • Jeff Magee was promoted to Marketing Underwriter Specialist on the Iowa/Nebraska/Kansas team
  • Robbie Anfinsen was promoted to Senior Underwriter on the Small Business Accounts team

June

  • Jason Kelley was promoted to Senior Underwriter on the Small Business Accounts team
  • Senior Marketing Underwriter Ben Cason, who is on the South/Metro Accounts team, earned his Chartered Property and Casualty Underwriter (CPCU) designation

July

  • Underwriter Debbie Sherman retired after nearly 34 years at SFM
  • Jenna Lefebvre was promoted to Marketing Underwriter Specialist on the North/Metro Accounts team
  • Senior Marketing Underwriter Connor Ferguson, who is on the North/Metro Accounts team, earned his Certified Insurance Counselor (CIC) designation

August

  • Phil Roberts joined the Underwriting Technical team as an Underwriting Support Representative

September

  • Robbie Anfinsen was promoted to Marketing Underwriter on the North/Metro Accounts team

 

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SFM Foundation to host two fall fundraising events

This fall brings two opportunities to support the SFM Foundation with events in Minnesota and Iowa.

Annual fall event returns

The Foundation’s annual Fall Fundraising Event is scheduled for 6-9 p.m. on Thursday, November 9, at The Westin Edina Galleria in Edina, Minnesota, near SFM’s Bloomington headquarters. The in-person event will feature wine, craft beer and cider tasting, a silent auction, raffles and complimentary appetizers. Tickets are $40 in advance and $50 at the door. The online silent auction will run from November 6-9. If you are unable to attend the live event you can still bid on items through the online bidding platform. If you’re interested in making a bigger impact, sponsorships are available at multiple giving levels and donations are also being accepted for the silent auction.

New Iowa event planned

A new event is making its debut this year in Iowa. The Bowling for Scholarships fundraiser is set for 5-9 p.m. on Thursday, November 2, at Spare Time Entertainment in West Des Moines, Iowa. Join the Foundation for an evening of bowling and live music by The Juan & Only. There are multiple ways to participate:

  • Register as a Team Sponsor for $500 and your team of four will receive two hours of bowling, shoes, pizza and refreshments. Team themes and costumes are encouraged. Prizes will be awarded for best team theme and highest team score.
  • If you’re interested in supporting the event without bowling, register to be a Lane Sponsor for $300 and you’ll have your logo displayed electronically at one of the 14 lanes.
  • Register as a Social Attendee for $50 if you prefer to hang out, watch the bowlers, listen to the live music, and enjoy two complimentary refreshments.

Proceeds from both fall events will support multi-year scholarships for students affected by workplace injuries.

Visit sfmfoundation.com/events  to learn more about these fun ways to support a great cause.

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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MN work comp law change regarding notice of non-emergency surgery

It’s now even more important for employers to notify their claims adjuster immediately if an employee requests a non-emergency surgery.

Minnesota workers’ compensation law changed recently to allow an employee to notify their employer directly of a request for non-emergency surgery. Once notice has been given, the employer or insurer has seven days to give a response to the request. In a previous version of the law, such requests had to be directed to the insurer by the health care provider.

Legal options available to employers and insurers for response include approving or denying the surgery, requesting additional information or a second opinion, or requesting an independent medical examination (IME).

 

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Hiring practices: Thorough processes can prevent injuries and problem claims

Following a thorough hiring process is one important way you can prevent problem workers’ compensation claims, along with other challenges.

“I always talk to employers about the importance of hiring and retaining the right people,” said Loss Prevention Specialist Dana Mickelson. “Usually if you have problem employees and they stick around long enough, they then are typically the ones with work comp claims that become more expensive.”

Choosing the right employee for a role is rarely easy, but there are steps you can include in your process to help you more confidently make hiring decisions.

Consider safety in your application and job description

Use the application to start the process off on the right foot.

We recommend employers have an official application process that includes a form applicants must complete that follows local, state and federal laws. Each job posting should include a current job description noting the physical requirements of the position.

“Consider having an ergonomist or physical therapist review the position and job description,” said Loss Prevention Specialist Nick Johnson. “This ensures you’re documenting, in detail, the correct physical requirements for the job.”

Being competitive in the market can also help you attract the best applicants for the role.

“Some companies have recently improved their pay and benefits to be competitive in the market, which in turn helps them to hire and retain their best employees,” Mickelson said. “That includes not only medical and retirement fund benefits, but also flexible schedules, among other perks for employees.”

Ask the right interview questions

Once you’ve narrowed down the pool of applicants, it’s best to hold several rounds of interviews, and have multiple people interview each candidate, to gather a more complete view of the candidate.

When preparing interview questions, we recommend including open-ended questions related to workplace safety.

“Let that person give their thoughts on the role and safety, rather than feeding them the answer you want, or making it easy for them to give you the answer you expect,” Johnson said.

How you ask questions is important, but so are the questions themselves.

State and federal laws are strict about what an employer can ask regarding a person’s physical limitations or workers’ compensation claim history, but don’t avoid these topics altogether. Employers can glean helpful information by asking other, related questions.

For example, asking an applicant about their past workers’ compensation claims is prohibited, however, employers can ask them about their previous workplace safety training and if they feel ongoing safety checks are important.

Similarly, an employer may not be able to ask a candidate about any disabilities, but they can use the job description to demonstrate the requirements of the role, and to ask whether the candidate can perform the tasks listed.

“I suggest employers use a detailed job description as part of the hiring process,” Mickelson said. “During the hiring process, you can review the essential functions of the job and have the applicant or new employee sign a statement confirming they can perform those functions.”

Mickelson said that having a confirmation of the employee’s capabilities documented may be helpful in the event of a work injury.

Follow a thorough vetting protocol

Once you’ve picked a candidate to move forward with, it’s in your best interest to do a background check and call references.

Below, we offer a list of recommended steps to take for every applicant you want to hire. Keep in mind that some of these steps may not be permissible until a conditional offer of employment has been made. Be sure to consult your employment law attorney.

  • Call references.
  • Conduct a nationwide criminal background check. Be sure to check state and local laws for any “Ban the Box” type regulations and compliance with the Fair Credit Reporting Act.
  • Consider a pre-employment physical examination for physically demanding jobs in accordance with state and federal laws.
  • Verify their educational credentials and professional licenses.
  • Verify legal eligibility to work in the U.S.
  • Use E-Verify as a tool.
  • For jobs that require driving, check motor vehicle records.
  • For safety-sensitive jobs, conduct drug and alcohol testing in accordance with state laws.

“The applicant may interview well, and you can’t always pick up on red flags during the interview process, but the background check and references may prevent onboarding the wrong candidate,” Mickelson said. “Many employers don’t check references because they feel that they don’t learn anything, but it’s important to at least verify employment history.”

Keep safety top of mind while training a new hire

Once you’ve hired your new employee, include safety training as part of their onboarding and then follow up afterward to reinforce the training.

SFM loss prevention experts recommend checking in three, six and nine weeks after a new hire is onboarded to answer any questions they may have and to emphasize the safety training they heard early on in their new role. It’s also important to maintain safety training records and have the employee sign acknowledgement forms regarding safety policies and practices.

“The three-, six-, and nine-week check-ins are critical to identify any additional safety training needs,” Johnson said.

Also ensure a robust safety orientation is provided to everyone, regardless of language. If a new hire does not speak English and that is your company’s primary language, make sure to assign a bilingual supervisor to stay in contact with them and to provide them the same standard of safety training.

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

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