Top Reasons Why Your Restaurant Needs Workers' Compensation Coverage
Owning and operating a successful restaurant can be incredibly fulfilling. But it's no secret that the food service industry is fast-paced and things can change in a heartbeat - including the health and wellbeing of your employees.
To add to this, restaurants also have their fair share of hazards for those who work in them. Busy kitchens are a hot spot for burns, cuts, and abrasions. Messy kitchen floors can lead to slip and fall accidents - the list goes on.
That's why Workers' Compensation coverage is paramount when you own a business in the food industry. Here's how this type of business insurance coverage can benefit you as a restaurant owner.
Workers' Compensation Coverage: How Does It Work?
Depending on what state you're based in, there could be laws that govern Workers’ Compensation. These laws and regulations are necessary to not only protect employees in the workplace but to protect employers from liability.
Most of the time, Workers' Compensation covers the cost of work-related accidents that result in injury, as well as occupational injuries and diseases.
However, this coverage is only valid if an injury, illness, or disease relates directly to the duties of employment. For example, Workers' Compensation could cover injuries caused by lifting a heavy object or slipping and injuring your back. But only if these injuries result from duties of the job.
Workers' Compensation coverage may not apply if an employee injures themselves outside of the workplace, such as in a car accident or on the way to or from work.
Why Workers' Comp Is Important for Restaurant Owners
As we highlighted earlier, owning and working in a restaurant comes with its own set of hazards. Workplace injury is actually quite common within the food service industry, with some of the most frequent accidents being:
- Cuts, abrasions, and scrapes
- Burns
- Slip and fall injury
- Overexertion
- Muscle sprains and strain
Working in a restaurant is a high-demand job. Employees are on their feet most of the day, while kitchen workers deal with hot surfaces and dangerous objects, day in and day out. Servers and bar staff carry both heavy and sharp objects. They might also handle chemicals when cleaning and could experience overexertion during a busy shift.
All the above factors could add up to workplace injury before you even realize it. This is where Workers' Compensation coverage could offer protection for both you and your employees. And not to mention, reduce your financial risk as a business.
Here are the top reasons to consider Workers' Comp insurance:
1. It's a Legal Requirement for Most Businesses
As previously mentioned, Workers’ Compensation coverage could be a non-negotiable when you own and operate a business. In almost every state in the U.S., you may be required to have this type of insurance by law regardless of your staff size.
However, Workers' Comp laws differ from one state to the next, so make sure to do your research on what your state requires. If you choose to overlook Workers’ Comp insurance, you're not only putting your employees at risk. You could be breaking the law and could put your entire business at risk financially.
2. It Can Cover the Cost of Injuries
Workers' Comp coverage can be invaluable when a worker injures themselves on the job. This is because employees can make a claim for all related expenses incurred by a workplace injury, including:
- Lost wages due to injury and recovery
- Emergency care that involves an ambulance or emergency room bills
- Long-term medical care that involves specialist checkups, medication, and therapy
Essentially, your employees can receive the financial aid they deserve, while your business remains protected from financial liability. Not only this, but Workers' Comp can provide restaurant owners with peace of mind knowing that Workers' Compensation insurance can cover medical expenses for injured employees.
3. It Can Help You Manage Risks as a Business Owner
You might have heard of the saying ''prevention is always better than cure''? Well, in this case, Workers' Compensation coverage is one of the best ways to help protect your business from financial risks should an injury occur.
Another way to help protect your business is to ensure safety measures are in place. Certain safety measures could also lower your insurance premium. Bear in mind that the level of risk within your workplace can play a factor in what you'll pay for Workers' Compensation coverage.
So the safer your business is, the lower your premium could be. All in all, having the right insurance could help you reduce risks your business could face.
Find the Best Workers' Comp Policy for Your Restaurant
If you own a new, up-and-coming small business that's trying to find its feet, the best place to start is with Workers' Compensation coverage. You need to ensure all your bases are covered, and with PolicySweet® by your side, we can help you achieve this.
Learn more about how our Workers' Compensation package can protect your business when you need it the most.