Workers Compensation for Food & Beverage Companies

September 4, 2019

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Workers’ compensation insurance is required in almost every state for businesses that have employees. It can cover medical fees and lost wages for work-related injuries.

Protect your chefs, servers, bartenders, and caterers.

In a busy kitchen, cuts and burns are almost inevitable. An injury at a restaurant, bakery, or food truck can lead to an expensive hospital bill and time off work, which can mean huge financial losses. Workers’ compensation helps pay an injured worker’s medical expenses and also recoups partial missed wages.

Workers' compensation can help pay for an injured employee's:

  • Immediate medical costs, such as an ambulance and emergency room visit

  • Ongoing medical costs, such as medications and physical rehabilitation

  • Partial lost wages for time spent recovering

Workers' comp protects food and beverage business owners

Typically included in your workers’ comp policy, employer’s liability insurance provides protection when an employee says you are liable for an injury and decides to sue.

Employer’s liability insurance can help cover:

  • Attorney’s fees

  • Court costs

  • Settlements

Even if a lawsuit is frivolous, you could find yourself paying for a costly legal defense. That means it’s worth getting workers’ comp even if you consider your restaurant, bar, or catering business low-risk. In most states, it's also required by law if you have employees.

How much does workers' comp cost for restaurants, bars, and other food service businesses?

The amount you pay for workers’ compensation is a specific rate for every $100 of your business’s payroll. Your premium is determined by the type of work done by your employees (classification rate), your experience modification rate (claims history), and payroll (per $100).

The formula is:

Classification rate x Experience modification rate x (Payroll / 100) = Premium

Workers’ comp requirements for restaurants and other food service businesses depend on state laws.

Each state sets its own laws for workers’ compensation requirements. For example, every restaurant in New York must carry workers’ compensation insurance for its employees – even part-time workers and family members. However, Alabama restaurants are only required to carry workers’ compensation when they have five or more employees.

Self-employed or independent contractors, sole proprietors, and partners typically don’t have to carry workers’ compensation insurance, but you can purchase a policy to protect yourself, too.

Keeping you protected.


All Access Insurance in Littleton, CO,  who represents multiple insurance companies as a “Broker” and provides products for auto, home,  commercial, workers compensation, and much more! Call us today for a free quote at (303) 932-1700.