When workers comp is required
Most states require employers to carry workers compensation once they have employees, though thresholds and exemptions vary. Part-time and seasonal staff usually count. Check your state's rules; penalties for going without required coverage can be serious.
How premiums are figured
Workers comp is generally priced on payroll by classification code. Restaurants often have one classification for most staff, though some states split kitchen and front-of-house roles. Ask your agent how tips are treated in your state for premium purposes, since rules differ.
Common injuries
- Burns from fryers ovens and steam
- Cuts from knives and slicers
- Slips on wet or greasy floors
- Strains from lifting deliveries
- Repetitive strain in prep work
Employment practices liability
Restaurants employ many people with frequent turnover, which can lead to claims of harassment, discrimination or wrongful termination. Employment practices liability covers defense and settlements for those claims, subject to its terms. It is separate from workers comp.
Safety programs
Non-slip mats, cut-resistant gloves, safe lifting training and a clear process for reporting injuries reduce claims. Some insurers offer safety resources to policyholders.
Reporting injuries
Have a simple process for staff to report injuries the same shift they happen, and report claims to the insurer promptly. Quick reporting helps injured workers get care and keeps claims manageable. Post any notices your state requires about workers comp in a place staff can see them.
Temporary and agency workers
If you use a staffing agency for extra help, confirm whether the agency's workers comp covers those workers or whether your policy must.
Frequently asked questions
Do owners need workers comp for themselves?
It depends on the state and the business structure. Some owners can opt out, others must be covered.