Worker Compensation For Restaurants
Finding an affordable price for restaurant workers' comp can be challenging, but it's definitely possible to significantly reduce your premiums.
In the food industry, restaurant workers’ comp is not optional. Whether you run a fast-food chain or a fine dining establishment, it’s essential to safeguard both you and your employees.
Accidents can happen at any time, even in the safest of restaurants. A slip, burn, or fall is always a possibility, and one unfortunate incident could result in losing a dedicated worker and potentially jeopardize your business.
What might surprise you, though, is how much insurers charge for coverage. It often feels like premiums keep rising year after year.
At Redvo Workers Comp Brokers, we believe you shouldn’t have to overpay to protect your business. That’s why we work hard to find the lowest premiums available.
As a restaurant owner, we could help you save as much as 30-40%. Imagine how those savings could be reinvested into your business for even greater growth.
Why Are Restaurant Insurance Premiums So Expensive?
Restaurant owners are often shocked by the cost of workers’ compensation insurance. Unfortunately, this high cost leads many businesses to delay getting coverage. But why are the premiums so expensive?
Insurance companies aim to maximize their profits, and insuring high-risk businesses can be a risky bet. Even if you’ve never filed a claim, the restaurant industry has a reputation for frequent on-the-job accidents.
According to the National Council on Compensation Insurance, most restaurants file an average of four workers’ comp claims each year, with each claim costing about $45,600. The need to cover medical bills and lost wages from these claims is a major factor driving up premiums.
The most common injuries in the food service industry include:
Common injuries in the food service industry include:
Burns and scalds
Cuts, lacerations, and puncture wounds
Slips and falls
Muscle sprains, strains, and tears
Repetitive motion injuries, like tennis elbow
Although proper training, regular inspections, and safety procedures can help minimize accidents, it’s impossible to eliminate all risks.
Even the most experienced chef or skilled server can end up needing medical attention due to a workplace injury.
Manufacturing workers face numerous risks every day, making it essential for companies in this sector to have strong protections in place. That’s where manufacturing workers’ compensation insurance plays a critical role. Whether you’re new to this type of coverage or considering updating your current policy, understanding your options is key. At Redvo Workers Comp Brokers, we specialize in providing fully customized workers’ compensation solutions tailored to the unique needs of the manufacturing industry—ensuring both compliance and protection for your workforce.
How is Workers' Compensation Premium Calculated?
Insurance companies follow a standard formula to calculate workers’ compensation premiums, taking into account your business’s risk level, payroll, and past claims.
The formula used by all insurers is:
Class Code Rate X Employer Payroll X Experience Modification Rate = Premium
At Redvo Workers Comp Brokers, we recognize that workers’ compensation coverage can be costly, but we specialize in helping you save. We work with a wide range of niche industries, including those that other insurers may not cover.
If one or more of the following situations is true for your restaurant, we may be a good fit:
Your business employs 5 to 500 people
You’re looking to lower your workers’ comp premiums
Your restaurant currently has a State Fund policy
You operate in a high-risk industry
Your previous insurance provider issued a non-renewal
You have a history of high claims
There are gaps in your current insurance coverage
Your company has a high experience modification rate
You can’t afford a large deposit
You’re tired of dealing with annual audits
You want to minimize the risk of lawsuits
What Qualifies You for Workers Comp?
By law, most states require businesses with employees to carry a workers’ compensation policy, and this includes all types of restaurants. Without coverage, you could be held liable for damages if an employee is injured on the job.
Many employees, however, may not report an injury they’ve sustained at work, even though they may be eligible for compensation. To qualify for benefits, the worker must be an employee, and the injury must have occurred while performing their regular job duties.
Work-related illnesses, such as COVID-19, may also be covered. In many cases, a restaurant worker’s coronavirus infection could qualify for benefits if they can prove they contracted the virus at work.
Workers’ comp benefits cover medical expenses, disability, survivor benefits, funeral costs, and rehabilitation. This means the injured employee doesn’t have to worry about out-of-pocket costs. Additionally, workers’ compensation protects restaurant owners from lawsuits related to work-related injuries.
Does Workmans Comp Cover Part Time Employees?
Under the latest workers’ comp laws, coverage applies to all employees of a business, regardless of whether they are full-time, part-time, seasonal, hourly, or salaried. As long as they are listed on the company’s payroll, they are eligible for benefits.
However, self-employed individuals and independent contractors are not covered by workers’ comp. These workers should secure their own liability insurance before taking on contract work.
How Many Days Do You Have to Be Out of Work to Collect Workers Comp?
Anyone injured on the job should seek medical treatment and file for workers’ comp right away. There’s no need to wait for the insurance company’s approval or denial. Medical benefits start immediately, and the insurer will cover the costs. If the claim is denied, the injured worker can always appeal the decision.
To qualify for temporary disability benefits, an employee must be off work for at least seven days.
On the eighth day, their workers’ comp claim will begin paying. If the employee remains off work for 14 days, they’ll receive retroactive pay for the first week they missed.
For instance, if an employee misses only six days of work, they won’t be eligible for disability benefits. However, if they miss 10 days, they’ll only receive disability pay for the last three days. Employees who miss 14 or more days will receive disability payments for the full duration of their absence.
Trucking and Towing
The trucking and towing industries are not exempt from on-the-job accidents. Even the most skilled workers face significant risks from reckless drivers on the road, leading to serious injuries or even fatalities.
Fatal accidents are 15 times more common in the towing industry, and the rate of nonfatal injuries is more than twice the industry average. A single accident can end a trucker’s career.
By providing workers’ compensation, trucking companies can offer their employees some much-needed peace of mind.
Carpentry
Carpentry may seem easy on TV, but in reality, it’s a high-risk profession. Carpenters handle a variety of tools, many of which can cause serious injury if not used properly.
Saws, hammers, nail guns, and sanders all present hazards. Carpenters report numerous workplace injuries each year, with common incidents including cuts, lacerations, head trauma, overexertion, and amputations.
Workers’ compensation covers medical expenses and lost wages if a carpenter is injured. It also protects business owners from potential lawsuits following a claim settlement.