Workers' Compensation Insurance: Why Does Your Coffee Shop Need It?
Workers’ Compensation insurance can be important for coffee shops with employees. Having this type of insurance may protect your business and employees. Learn more about Workers’ Compensation insurance by watching the video:
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According to reports, food and beverage workers suffered over 26,000 non-fatal injuries over a 6-year period. During this same time, 141 fatal injuries took place. As a coffee shop owner, you need to be prepared to protect your employees and the business. Keep watching for the reasons why Workers' Compensation insurance may be so important, especially when it comes to coffee shops.
Workers' Compensation Insurance
Workers' Compensation insurance is a form of insurance that provides coverage for the costs associated with workplace accidents. As a business owner, you have a legal responsibility to your employees to financially assist them if they are injured at work. This assistance includes: coverage of medical/treatment costs and missed wages or disability compensation. Workers' Compensation coverage insures you as a business owner against these types of liabilities. There are a number of reasons why as a coffee shop owner, you need to take out Workers' Compensation insurance for your small business.
Coffee Shop Environments
Besides that fact, that it is probably mandatory for you to have Workers' Comp, depending on what state you live in. It is also the wise choice if you own a coffee shop. Coffee shop environments are safer than sectors like construction. However, there are still a number of common workplace accidents that can occur. Slips and falls are not unusual in coffee shops as employees have to do a lot of walking and are often in a rush to get customers served as fast as possible. Coffee and other beverage spills increase the likelihood of slips, as does frequent mopping. Back injuries are another possibility, as employees often need to carry heavy trays while negotiating tables, customers, and other staff. Burns are also a common coffee shop and beverage industry injury. Finally, one of the most typical coffee shop employee injuries is Barista Wrist. This comes from continued and repetitive strain on the wrist that results from operating espresso machines. As an employer, the last thing you can afford is to compensate someone for extended time periods while they are unable to come to work.
Costly Lawsuits
Having to meet a Workers' Compensation claim out of pocket can be a crippling expense. Depending on the injury type, you might need to pay out a substantial amount for medical treatment. Once that is covered, however, you may also need to compensate your employee a portion of their salary if they are unable to come to work. This is referred to as lost time and can have a compounded negative effect for employers. Not only do you have to pay the employee a portion of their salary, but you will also be down one staff member. Coffee shops have the highest lost-time stats in the industry. According to statistics, coffee shops have 45% more lost time than any other restaurant type. Many coffee shops do not have the financial liquidity or capacity to cover serious incidents and extended periods of lost time. If you are just starting out, having to weather a heavy Workers' Comp claim could even spell the end for your coffee shop business if you do not have the capital to cover it.
Workers' Compensation Insurance
If you are wondering how much is Workers' Compensation insurance, there is not a one-size-fits-all answer. Costs can range anywhere from $35 to $2,876 per employee per year. To get an accurate estimate of what your costs would be, request a free quote from us. Taking out Workers' Compensation insurance will ensure that you are protected against compensation claims, lawsuits, and legal penalties. To take your business's financial security up another level, you can also consider taking out a Business Owners Policy (BOP) or general coffee shop insurance.
If you have any questions about either of these, please feel free to contact us and we would be happy to assist you.