Workers’ Compensation insurance for restaurants

How can Workers’ Compensation insurance for restaurants help protect your business?

Restaurant workers’ compensation coverage could help cover the costs of:

• Medical expenses
• Lost wages
• Job retraining
• Permanent disability benefits
• Death benefits
• Employers liability in the event of a lawsuit

Whether you own a fine dining establishment, catering business, franchise, fast food restaurant or serve out of a food truck, business owners know how physically demanding and potentially dangerous the work can be. In 2024, food service and beverage businesses experienced 2.4 injuries per 100 full-time workers, according to the BLS Survey of Occupational Injuries and Illnesses. For your staff and your bottom line, the risk of hot ovens, slippery floors and sharp tools is all too real.

Workers’ compensation insurance could help protect restaurant owners from financial losses after employee workplace injuries or illness.

And if you run your own restaurant or food business, you can add optional business owner’s coverage for yourself so that you have the same coverage as your employees if you get injured at work.

1. Workers’ Comp may be required by state law

In most states, workers’ compensation insurance is legally required if you have employees. Requirements vary by state: Some require coverage with just one employee, others set the threshold at three or more. Part-time and seasonal employees typically count, which matters for restaurants that bring on extra servers or kitchen staff during busy seasons.

Even if your state doesn’t require workers’ comp coverage, some clients, vendors and event venues will require a certificate of insurance, also called a COI, to prove that you have adequate insurance coverage before they’ll work with you.

2. Workers’ Comp could help cover the cost of work-related injuries

Kitchen and front-of-house work comes with real hazards. A cook who burns their hand, a dishwasher who slips on a wet floor, a delivery driver who strains their back unloading an order — these types of events aren’t rare in the restaurant industry.**

These injuries can lead to an emergency room visit, follow-up medical care and time off to recover. The doctors’ bills and lost wages can add up fast. Workers’ comp could help cover those costs so one bad shift doesn’t threaten your business.

3. Your employee’s income (and your cash flow) could be protected under Workers’ Comp

If an injured employee needs time away to recover, workers’ comp could replace a portion of their lost wages while they heal. For a restaurant worker like a line cook or a server who can’t work a shift, that income protection can make a real difference. And it means you’re not forced to choose between taking care of your staff and protecting your cash flow.

4. A Workers’ Comp policy could help you gain more business

If you run a catering business or food truck, many event venues, corporate clients and general contractors require proof of workers’ comp coverage before they’ll book you — regardless of state law. Even for brick-and-mortar restaurants, some vendors and licensing boards expect you to have business insurance. Carrying coverage signals that you run a professional operation, and having your certificate of insurance (COI) ready to go could help you be more competitive.

What could restaurant Workers’ Comp insurance cover?

These are some of the common risks that you and your team could be exposed to at work:

1. Accidental employee injury costs from falls, burns and cuts

Your employee slips on a wet floor and requires a visit to the emergency room or a knife cut requires stitches in the middle of a shift. Restaurant workers’ compensation insurance could help cover medical bills.

2. Lost wages after an injury or accident

If a kitchen injury keeps one of your employees out of work — a burn needs to heal or a sprain can’t handle a full shift — workers’ comp could help cover a portion of employee wages during recovery. That can mean the difference between financial stability and a real crisis for many employees.

3. Work-related permanent injury or death benefits

Serious injuries are uncommon in food service, but they do happen. If an injury results in long-term disability, workers’ comp could help cover ongoing benefits.

In the event of a workplace fatality, workman’s comp insurance could also help with burial expenses and survivor benefits for the employee’s family.

These aren’t situations any restaurant owner wants to think about, but coverage means you’re prepared for the worst.

4. The costs of an employer liability lawsuit

If an employee believes their injury was caused by unsafe workplace conditions like a broken floor mat or a faulty piece of equipment, they could file a lawsuit against your business. Legal defense costs can be significant, even if the claim isn’t found to be viable. Workers’ comp for restaurants typically includes employer liability coverage that could help cover legal costs and settlements.

What are the most common business risks for restaurants and food businesses?

Working in the food and service industry can expose you to a number of risks. In addition to falls, burns and cuts, some of the most common risks include:

1. Repetitive stress injuries

Restaurant work isn’t just about dramatic accidents. A line cook who chops and preps for eight hours a day, a server who carries heavy trays shift after shift, or a barista who steams hundreds of drinks a week can develop repetitive stress injuries over time — tendinitis, carpal tunnel, back problems. These injuries can build slowly and sideline an employee for weeks or months. Workers’ comp insurance for restaurants could help cover treatment and lost wages for these conditions.

2. Kitchen equipment injuries

In addition to knives, commercial kitchen equipment like slicers and deep fryers can cause serious injury fast. Workers’ comp could help cover the medical costs and recovery time.

3. Heat-related illnesses

Commercial kitchens can get extremely hot, especially during summer service rushes. Heat exhaustion and heat stroke are real occupational hazards for kitchen staff working long shifts in high-temperatures. If a cook collapses during service, workers’ comp could help cover their medical treatment and time off to recover.

4. Injuries during off-site catering or delivery

Catering staff set up and break down events on location, and delivery drivers are exposed to road risks and the physical hazards of loading and unloading. Workers’ comp could help cover employees while working outside the kitchen.

How much does Workers’ Compensation insurance for restaurants cost?

The cost of workers’ compensation insurance (also called the premium) for restaurants and other food service businesses can depend on a number of factors, including:

• How many employees you have.
• What type of food service business you operate.
• Your payroll expenses.
• How long you’ve been in business.
• The state where you work.
• Your claims history.

ERGO NEXT offers tailored, affordable restaurant workers’ comp insurance policies that provide the right coverage for your business

How ERGO NEXT can help protect your restaurant or food business

ERGO NEXT has workers’ compensation insurance that’s convenient and affordable – and you can do everything 100% online.

We’ll ask a few questions about your business and give you a quote. You select your coverage options and buy your policy — all in about 10 minutes. Your certificate of insurance will be available immediately, and you can access your policy 24/7 via web or mobile app.

If you have questions, our licensed, U.S.-based insurance professionals are available to help.

Start a free quote with ERGO NEXT.