Restaurant Worker Carrying a Tray of Food

It’s not always easy to find a great price on restaurant workers comp, but it is possible to lower your premiums more than you could ever imagine.

When you work in the food industry, restaurant workers comp isn’t an option. Whether you own a casual fast-food joint or an elegant sit-down establishment, it’s imperative to protect you and your employees.

After all, you never know when an accident may happen. Even the safest restaurants aren’t immune from the occasional slip, burn, or fall. And all it takes is one tragic event to lose a loyal worker and bankrupt your restaurant.

What may come as a surprise, however, is how much insurance companies want you to pay for coverage. And it seems like the premiums just get higher with every passing year.

At Coastal Work Comp Brokers, we don’t believe you should overpay to protect your business. That’s why we search high and low to find the lowest premiums available.

As a restaurant owner, we may be able to save you a whopping 30-40%. Think about how you could reinvest those savings back into your business.

Why Are Restaurant Premiums Always So High?

It often shocks restaurant owners to learn how much workers compensation insurance will cost them. And, unfortunately, many businesses put off getting coverage for this very reason. But why do the premiums cost so much?

Insurers want to make as much money as possible, and selling a policy to a high-risk company may be too much of a gamble. Even if you’ve never filed a claim before, the restaurant industry has a reputation for on-the-job accidents.

According to the National Council on Compensation Insurance, most restaurants file four workers’ comp claims each year. And the average cost of each claim is about $45,600. Paying out all these medical bills and lost wages are the reasons for skyrocketing premiums.

Here are the most common food service injuries:

  • Burns and scalds
  • Cuts, lacerations, and punctures
  • Slips and falls
  • Muscle sprains, strains, and tears
  • Tennis elbow and other repetitive motion injuries

While proper training, inspections, and procedures can reduce the number of accidents, it’s not possible to prevent them all.

Even the most skilled chef or talented waiter may find themselves needing medical care due to a work-related injury.

How Is Workers Compensation Calculated?

Insurance companies use a standard formula to determine the premiums for your workers’ comp policy. They base the final number on the risk of your business, your payroll, and any past claims.

Here’s the equation all insurers use as a guide:

Class Code Rate X Employer Payroll X Experience Modification Rate = Your Premium

Coastal Work Comp Brokers understands that workers’ compensation coverage is expensive, but we also know how to help you save money. We work with a variety of niche industries—even those no one else will cover.

If one or more of the following situations is true for your restaurant, we may be a good fit:

  • You have 5-500 employees.
  • You want lower workers’ comp premiums.
  • Your restaurant has a State Fund Policy.
  • You work in a high-risk industry.
  • Your previous carrier issued a non-renewal.
  • You have a high loss report.
  • There is a gap in your insurance coverage.
  • Your company has a high experience modification rating.
  • You can’t afford a large deposit.
  • You don’t want to deal with annual audits anymore.
  • You want to prevent lawsuits.

What Qualifies You for Workers Comp?

By law, most states require any business that hires employees to carry a workers’ comp policy, including all types of restaurants. Without coverage, you may be liable for damages if an employee gets hurt at work.

Many employees, however, don’t speak up about an injury they sustained at work. But in most instances, they would be eligible for compensation. To qualify, the worker must be an employee of the company, and the injury must have occurred while performing regular job duties.

Even a work-related illness may qualify for benefits. With COVID-19 on everyone’s radar, people want to know if workers’ comp will cover them. In many cases, a restaurant worker’s coronavirus is eligible if the employee can prove they contracted the virus while at work.

Benefits cover medical bills, disability, survivor benefits, funeral expenses, or rehabilitation. The injured employee shouldn’t have to worry about any out-of-pocket bills. Plus, workers’ comp coverage also protects the restaurant owner from any lawsuits relating to the injury.

Does Workmans Comp Cover Part Time Employees?

According to the most recent workers comp laws, coverage protects all employees of a business. It doesn’t matter if they are full-time, part-time, seasonal, hourly, or salaried. As long as the company lists them as an employee on the payroll, they will receive benefits.

However, self-employed workers and independent contractors are not entitled to workers’ comp benefits. These workers should obtain their own liability insurance before engaging in 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 immediately. There is no reason to wait for the insurance company to approve or deny a claim. Medical benefits kick in right away, and the insurance will foot the bill. If the insurer denies the claim for any reason, the injured party can always appeal the case.

A disabled employee must be out of work for at least seven days before they can collect temporary disability benefits.

On the eighth day, their workers’ compensation claim will begin paying. If they remain out of work for a full 14 days, the employee will receive retroactive pay for the first week they missed.

For example, if an employee only misses six days of work, they are not eligible for workers’ comp disability benefits.

On the other hand, if they miss 10 days, they will only receive disability pay for the last three days. Those missing 14 or more days of work can collect disability payments for the entire period.

What Pays More, Disability or Workers Comp?

Anyone directly injured on the job should apply for workers’ comp as it’s usually the best choice. Most employees receive more financial assistance this way.

Workers’ compensation benefits usually last even longer than disability payouts. Furthermore, partial benefits are available if the worker returns to work at a lesser capacity.

Many employers carry both workers’ compensation and long-term disability insurance. Even though disability often pays less, anyone who may qualify for the programs should go ahead and apply. Failing to do so may result in the insurance companies denying the worker for both.


Get the Best Workers’ Comp Insurance for Restaurants

Accidents can happen in the blink of an eye. And in an environment known for hot surfaces, sharp knives, and slippery floors, it’s only a matter of time before someone gets hurt.

If you operate a food service business, you need to purchase a restaurant or bartender workers’ comp policy. This type of insurance protects both yourself and your employees. Besides, in most states, it’s also the law.

At Coastal Work Comp Brokers, we make buying the right workers’ compensation plan easy.

Coastal Work Comp Brokers specializes in finding affordable policies for high-risk and high-mod industries. Even if you are a startup venture, have a gap in coverage, or need a multi-state risk coverage option, we can help.

With our convenient pay-as-you-go plans, you’ll even be able to avoid the annual audit.

Call 1800-411-0733 for expert help in finding the best restaurant workers comp option for you.