Billing changes due to endorsements can catch policyholders off guard.

When agents receive a notice of an endorsement, they can help ease the concerns of policyholders by alerting them right away. Although clients may expect changes because of their annual premium audit, they may be less familiar with the process involving endorsements.

As a reminder, endorsements can be made for a variety of reasons, such as adding or removing a state of operation, changing their installment plan, changing their payroll amounts or changing their address. Sometimes these changes affect their premium amount; sometimes they do not.

At SFM, the premium audit occurs just after a client’s policy period ends, so at that point they are making payments on their new policy for the year — those payments could potentially go up depending on what was discovered in the audit. It should be noted that when there is an audit premium impact, it is billed more quickly than premium-bearing endorsements.

That’s why it’s doubly important to give policyholders a heads-up regarding any endorsements.

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A new U.S. Department of Labor (DOL) rule regarding who qualifies as an independent contractor took effect in the spring of 2024.

The new rule adopted a new six-factor test for determining whether a worker is an independent contractor. (However, employers must also be aware of their respective state requirements.)

Due to this change, some employers may have questions on whether they need workers’ compensation policies to cover independent contractors. Generally, employers are required to provide coverage for lost wages and medical costs due to work injuries for an employee, but not an independent contractor.

Also, depending on the jurisdiction or contract requirements, workers’ compensation policies for subcontractors may be required from the general contractor in order to secure a job.

Agents can help employers navigate these complexities by checking out our blog, Are your workers independent contractors or employees?

This new DOL rule also underscores the value of breaking out work comp coverage from a group insurance plan. Using SFM provides an extra layer of service and expertise for employers who may find challenges navigating the independent contractor rule and its implications for workers’ compensation.

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Agents and policyholders can now access the latest batch of SFM promotional videos on YouTube.

The four videos highlight the strengths SFM brings to policyholders.

Check out the videos on YouTube:

• SFM Mutual Insurance – Protecting workers from harm
• SFM Mutual Insurance – 34 states with coverage
• SFM Mutual Insurance – Your trusted partner in workers’ comp coverage
• SFM Mutual Insurance – Let’s work together

Also, the videos are available on our Marketing videos page.

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The recording of SFM’s recent webinar on safe driving and the implications for workers’ compensation is now available for agents and clients.

During the hourlong webinar, held in June 2024, SFM professionals shared 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
• Question-and-answer session

Also, you can find previous webinars on our website, featuring a number of important work comp topics, including:

• Hiring and onboarding
• Claims 101
• Avoiding litigated claims
• Fundamentals of a return-to-work program
• Loss prevention 101
• Winter slips and falls

Lastly, be sure to sign up for alerts on future SFM webinars.

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You can find a wealth of information on current policies in SFM Agency Manager (SAM), including the upcoming e-mod for policies that are renewing soon.

Renewal e-mods are typically available in SAM as early as 90 days prior to the renewal.

To find it, just log in to SAM and go to “Policies,” and click on the policy you’re interested in. On the policy overview screen, you’ll find the upcoming e-mod in the right column, toward the bottom just under the current e-mod.

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SFM is planning to participate in several industry events in the coming months, including:

• July 28-31: American Association of State Insurance Compensation Funds annual conference in Providence, R.I.
• Aug. 27-28: Independent Insurance Agents of Iowa annual convention in Altoona, Iowa.
• Sept. 8-10: Independent Insurance Agents of South Dakota annual convention in Sioux Falls, S.D.
• Oct. 5-8: Insurors of Tennessee annual convention in Nashville, Tenn.
• Oct. 9-11: Independent Insurance Agents of Nebraska annual convention in Kearney, Neb.
• Sept. 23-26: International Association of Industrial Accident Boards 110th convention in Toronto, Canada
• Nov. 11-12: Big I Indiana annual convention in Indianapolis

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Here’s a look at the latest updates and milestones for SFM’s underwriting staff over the past few months.

• Underwriting Technical Specialist Ashley Butcher completed her Chartered Property and Casualty Underwriter designation (she was also promoted to Business Team Leader of Small Business Accounts)
• Vice President, Director of Underwriting Brian Bent was appointed to the National Council on Compensation Insurance (NCCI) Underwriting Committee
• Kevin Simberg was promoted to Underwriting Technical Specialist
• Gabby Frein was promoted to Senior Underwriter
• Eric Olafson was promoted to Underwriting Technical Specialist
• Michele Schaeperkoetter was promoted to Marketing Underwriter Specialist
• Carmen Klug was promoted to Business Team Leader of Wisconsin Accounts

Other SFM news of note:

• Cody Allen was promoted to Territory Manager
• Mark Lewis was promoted to Business Team Leader of the Small Business Accounts team

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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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