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Top 4 Workers’ Compensation Exposures for Restaurant Owners

Jan 2, 2025

From juggling tight margins to creating a memorable customer experience, restaurant owners are no strangers to challenges. But lurking behind the scenes of every bustling kitchen and buzzing dining room is a risk that often goes unnoticed — employee injuries. According to the 2024 AmTrust Restaurant Risk Report, the restaurant industry faces a significant burden from workers’ compensation claims. Understanding these risks is the first step toward helping your clients protect their employees and their bottom line.

Breaking Down the Risks: Most Common Workers’ Comp Claims in Restaurants

The AmTrust report, which analyzed nearly 130,000 workers’ comp claims from 2018 to 2023, highlights the top injury trends that restaurant owners need to watch out for:

  • Cuts, Punctures, and Scrapes
    The most common injury type. These incidents often involve kitchen tools, broken glass, or other sharp objects. While frequent, they are relatively inexpensive to treat, with an average claim of $1,798.
  • Burns and Scalds
    Hot surfaces, boiling liquids, and frying oil are hazards that make burns the second-most-common injury. These claims cost an average of $4,326 per incident.
  • Muscle Strains and Sprains
    Whether from slipping on a wet floor or moving heavy supplies, these injuries, though less frequent, cost significantly more — $9,966 to $10,672 per claim.
  • Back Injuries
    While not as common, back injuries such as disc, vertebrae, and spinal cord damage are by far the most expensive, costing restaurant employers $60,000 to $85,000 per claim. The physical demands of food-service work — heavy lifting, repetitive motions, and bending — have contributed to an increase in these types of injuries in recent years.

The Hidden Cost of Workers’ Comp Claims 

The financial impact of workers’ comp claims extends far beyond the direct cost of medical treatment and wage replacement. Rising claim expenses can increase insurance premiums, eat into profit margins, and affect employee morale. For small and mid-sized restaurants, a single high-cost injury, like a back injury, can be financially devastating.

But the hidden costs don’t stop there. According to the Occupational Safety and Health Administration (OSHA), indirect costs associated with workplace injuries can be one to twenty times greater than direct costs, depending on the total costs of the injury. These hidden costs include:

  • Lost Productivity: Injured employees may require weeks or months to recover, leaving shifts understaffed or forcing the employer to pay for temporary labor. In high-turnover industries like restaurants, this disruption can lead to slower service, longer wait times, and dissatisfied customers.
  • Employee Turnover: When workers feel unsafe or overburdened, they are more likely to leave their jobs. Though turnover rates have returned to pre-pandemic levels, it’s still an issue within the industry, and workplace injuries only exacerbate it.
  • Reputational Damage: A restaurant’s reputation can suffer if news of a preventable injury goes public. Customers may question the establishment’s commitment to safety and employee well-being, potentially leading to decreased business.
  • Legal Costs: Severe injuries can sometimes result in lawsuits, especially if the employee believes negligence contributed to the incident. Legal fees and settlements can be crippling for small businesses.
  • Training Costs: If an injured employee cannot return to work, new hires must be trained. Training costs can add up quickly, especially during busy periods when time and resources are stretched thin.

These ripple effects highlight why proactive loss control and workplace safety measures, along with the right workers’ compensation insurance carrier partner, are essential for small business restaurants. 

Jencap: Your Workers’ Compensation Partner

Navigating the complexities of restaurant insurance coverage requires an experienced partner. That’s where Jencap steps in. With a deep understanding of the restaurant industry and a proven track record in workers’ comp, Jencap offers comprehensive insurance solutions that help restaurant owners mitigate risks and safeguard their operations.

Ready to take the next step? Contact Jencap today to learn more about workers’ comp coverage tailored to the restaurant industry.
The Jencap Workers' Compensation Insurance Team

The Jencap Workers' Compensation Insurance Team

Workers’ compensation is not a generalist’s game. Jencap’s dedicated division of industry-leading workers’ compensation experts understands every facet of this complex coverage line — from multi-state operations and high-hazard risks to United States Longshore and Harbor Workers Compensation Act (USL&H), and everything in between. No matter your clients’ industry, state, experience modification factor, premium size, or class code, the Jencap workers' compensation team has you covered.

Workers’ compensation insurance for small busi | workers' comp claims | restaurant insurance | workplace injuries

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Put Jencap to Work For You

When it comes to workers’ comp, you don’t want a generalist broker who dabbles in a number of lines. You want someone who focuses on workers’ compensation policies, day in and day out. Our team of brokers has expertise in every corner of the workers’ compensation market and understands the legislative nuances across each state. We have the premium volume, carrier clout, and long-tenured relationships with the best workers’ compensation carriers in the industry. From monoline options to packaged solutions and everything in between, Jencap has an insurance solution that will address your clients’ needs.
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