Even if workers’ comp is not required for your restaurant or food service business, the protection of workers’ compensation could be a huge asset.
If an injury occurs on the job, the business can be held responsible. Workers’ compensation insurance can help cover injury-related costs to help protect the financial stability of your food business.
Jump ahead to learn:
- Why do restaurants need Workers’ Compensation insurance?
- What are the most common business risks for restaurants and food businesses?
- How much does Workers’ Comp cost for a restaurant or food service company?
- How NEXT can help protect your restaurant or food business
Why do restaurants need Workers’ Compensation insurance?
Workers’ comp coverage can help cover the costs of:
- Medical expenses
- Lost wages
- Job retraining
- Permanent disability benefits
- Death benefits
- Employers liability in the event of a lawsuit
Workers’ compensation insurance is a type of business insurance. It can help protect restaurant owners of any size from financial losses after a work-related injury or illness.
Workers’ Comp may be required by state law
In most states, workers’ compensation insurance is required by law if you have employees. But even if you’re a sole proprietor (meaning a business of one) a workers’ comp policy could be required.
Workers’ Comp can help cover the cost of work-related injuries
Restaurant work can be very physical, meaning workplace injuries such as slip-and-fall incidents, repetitive stress trauma, burns, cuts and more can be common.
If you or your employee gets hurt, medical bills could add up quickly.
Your income or your employee’s income could be protected under Workers’ Comp
If someone covered by the insurance needs time away from work to heal after a covered injury or illness, a percentage of their income could continue until they’re able to get back to work.
A Workers’ Comp policy could help you gain more business
If you work in the food or restaurant industry as a caterer or run a food truck, some clients could require you to carry a certificate of insurance (proof of insurance) to prove you have workers’ compensation insurance coverage.
But even if it’s not required, carrying this essential insurance protection could make your business look more polished and professional than your competitors.
What are the most common business risks for restaurants and food businesses?
These are some of the common risks that you and your team could be exposed to at work:
Accidental injuries like falls, burns and cuts
Your employee slips on a wet floor and hits their head, requiring a visit to the emergency room. Or a dull knife causes one of your cooks to require stitches in the middle of a shift.** Workers’ compensation insurance for your food business can help cover their medical bills.
Lost wages after an injury or accident
If a line cook suffers a bad burn that keeps them out of the kitchen, workers’ comp insurance could help cover lost wages while they recover.
Work-related permanent injury or death
Severe injuries are rare in the food industry, but in the event that a serious or life-threatening accident occurs, your workers’ comp insurance could help cover some of the associated costs.
Depending on the extent of the injury, this may include long-term disability benefits, burial expenses or survivor benefits for an employee’s family.
An employer liability lawsuit
An injured employee could file a lawsuit against your business claiming that your negligence put them at risk. If this happens, workers’ comp insurance could help with the legal costs to defend yourself.
If you run your own restaurant or food business, you can add business owner’s coverage to ensure that you have the same coverage as your employees if you get injured at work.
How much does Workers’ Comp cost for a restaurant or food service company?
The cost of workers’ compensation insurance (also called the premium) for food businesses can depend on a number of factors, including:
- How many employees you have
- Your payroll expenses
- Your claims history
- How long you’ve been in business
- The state where you work
NEXT offers tailored, affordable workers’ comp insurance policies that provide the right coverage for your business.
