Workers’ Compensation: Protecting Your Restaurant and Your People

The restaurant world is a fast-paced environment where the risk of injury is a daily reality—from kitchen burns and knife cuts to slips on a wet floor. For California restaurant owners, Workers’ Compensation insurance is not optional; it’s a legal requirement and a smart business decision.

At Cal-Society Insurance Services, we help you understand why this coverage is vital.

Why Your Restaurant Needs Workers’ Comp

In California, almost every employer must carry Workers’ Compensation. For your business, it serves two critical purposes:

1. Employee Protection: It covers your staff’s medical expenses and provides partial wage replacement if they get hurt or sick on the job.

2. Business Protection (Exclusive Remedy): When an employee accepts Workers’ Comp benefits, they typically waive the right to sue you for the injury, protecting your business from potentially devastating lawsuits.

Common Risks Covered

The types of claims covered are specific to your industry:

• Slips and Falls: Sprains and broken bones from spills in the dining room or kitchen.

• Cuts and Lacerations: Injuries from knives, broken glassware, or prep equipment.

• Burns and Scalds: Contact with hot oil, ovens, or steam.

• Lifting Injuries: Back strains from moving stock or heavy equipment.

How Your Rates are Determined and Controlled

Your premium is based on your payroll and the classification codes assigned to different job roles (a server is lower risk than a cook). The most important factor, however, is your Experience Modification Rate (Mod).

Your Mod compares your restaurant’s past claims history to the industry average. A high number means higher premiums; a low number means a discount.

3 Key Steps to Lower Your Premium:

1. Prioritize Safety Programs: Implement rigorous training on knife handling and floor safety to prevent injuries from happening.

2. Report Claims Immediately: Fast action helps control medical costs and guides the injured employee back to work sooner, keeping your Mod rate down.

3. Use Return-to-Work Programs: Offer temporary light-duty tasks. This practice significantly reduces the total cost of the claim and minimizes the negative impact on your Mod.

Workers’ Compensation is a necessary investment that stabilizes your restaurant’s financial health while ensuring your staff is cared for.

Ready to ensure your restaurant has the right coverage at the best possible rate?

📞 Contact the experts at Cal-Society Insurance Services today!