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Workers’ Comp for Restaurants

workers-comp-for-restaurants

Owning a restaurant creates a never-ending to-do list. Let’s be clear…one of the last things on your list is your insurance, but without doing this part right it can cost you everything you’ve worked for. There are several insurance coverages you need for your restaurant, but for this video let’s talk about workers’ comp insurance for restaurants.

One area of insurance we focus specifically on is restaurants. From one-man shops to businesses with hundreds of employees, we’ve built programs for each level of your business.

While I’ve never owned a restaurant, my family has. I also worked my way through college as a server at a well-known restaurant. Your employees are at risk every corner they turn which consequently also puts you at risk.

Are they wearing proper shoes? Is there a spill that hasn’t been cleaned up? What if that grease catches fire? What if something happens to them outside on their smoke break? Should they be lifting those heavy food boxes?

You want your customers to have the best food and the best experience. Repeat customers are ideal, too, right? You want them to tell their friends about their great experience, and positive posts on social media.

All of this begins and ends with the faces, the front lines of your restaurant which is your employees. Proper training, compensation, and maintaining a safe work environment are crucial to delivering your customers that unforgettable experience.

We can dive further into training, how your compensation compares to your peers, your culture, etc., but let’s go over some quick tips you need for your workers’ comp policy.

Is Workers’ Comp Insurance Required?

Living in Kentucky, you are required to carry a workers’ compensation policy if you have employees (yes even if it’s your nieces, nephews, and cousins). Family members get hurt just the same as non-family members. If we’re being honest, a family member getting hurt can actually be worse.

Are Your Employees Classified Correctly?

Next, if you only operate a single location, then it is more likely than not that all of your employees perform some function in the dining or kitchen area of your restaurant. What I mean by this is all of your employees are either preparing or serving food or keeping everything clean. If you have multiple locations, then it’s more likely you may have an employee or two that only perform office work functions. In this case, you’ll want to make sure that payroll is separate. The rates for office/clerical workers are significantly cheaper than for other restaurant workers.

Workers’ Comp Discounts

Another thing is to be sure you’re getting all the discounts. Your customers love bringing in their coupons, so why shouldn’t you get a discount, too? We have another video with some of these same tips, but depending on where you are located, what insurance company you’re with, and/or associations you are a part of, you may be eligible for a variety of discounts including a Chamber of Commerce discount or a Restaurant Association discount. You may even be eligible for a drug-free workplace credit.

Should You Consider Pay-As-You-Go Workers’ Comp?

Your restaurant may see a more seasonal flow of traffic which directly impacts your payroll, especially if your restaurant is located in a more touristy area. If this is the case, you may want to consider a pay-as-you-go workers comp policy. We have another video that goes deeper into the ins and outs of that program, but this would only charge you a premium based on your actual payroll that month. It may very well be more cash-flow friendly.

Nurse Triage

Another important policy feature to consider is nurse triage provided by the workers’ comp company. Restaurant employees get small cuts, temperature burns, and bruises all the time. Nurse triage allows your employees to speak with a licensed nurse on a recorded line to be cared for immediately. This can have significant long-term savings for you.

Finding the Right Workers’ Comp Insurance Company

Finally, another element that encompasses several of the things we’ve already discussed is making sure you are with the right insurance company. This space is very competitive when it comes to rates offered by companies. Work with your agent, like us, to ensure you are in the best program from both a pricing standpoint and services that company offers. We work with insurance companies that specialize in workers’ comp for restaurants.

Next Steps

If you own a restaurant and have employees in Kentucky, and have more questions about your workers’ comp insurance program, give us a call at 606-679-6311 or email me at asheridan@rbisomerset.com. You can also visit our video library to answer your business insurance questions anytime. 

We look forward to working with you.