Guide to Workers’ Compensation in the Hospitality Industry

Most business owners are familiar with what workers’ compensation is and how it protects their business. However, workers’ compensation insurance can be complex and hard to understand. This is because policies vary based on the state you operate in and the type of business that you own. Make sure your workers’ compensation policy is the right fit for your business, contact our agents at H&K Insurance.

The operation of a restaurant is typically fast-paced and has the potential for dangerous situations—leading to incidents that affect or hurt your employees. Below we’ll go over the basics of worker’s compensation, and how to save money on this type of insurance.

Components of Workers’ Compensation

You will find that most policies offer the same benefits. Workers’ compensation is state regulated, so policies vary based on the state laws. If you have restaurants in multiple states, then it is important to understand what exactly the policies cover in each location.

The following are parts covered by worker’s compensation for the employees:

1. Injuries: Potential risks within restaurant environment can occur if an employee disregards safety protocol. Workers’ compensation covers the medical expenses and injuries an employee may receive on the job.
2. Wages: If an employee was injured on the job and needs time to recover, they will be paid a portion of their full wages during their leave of absence.
3. Illness: This coverage is usually for jobs where the employee will be around dangerous chemicals and radiation. Carpal tunnel and other stress related issues also qualify as illnesses.
4. Death Benefits: This addition covers the funeral costs and other costs the family of the deceased may incur. In the state of Massachusetts, workers’ compensation insurance covers up to $4,000 of funeral costs.

Workers’ compensation is used to recover from injuries that occurred on the job. But, it will also add protection against legal claims brought against you and your business. Generally, employees are barred from suing an employer who has workers’ compensation insurance. This compensation system was established as a trade-off in which injured employees give up their right to sue employers in court in exchange to receive workers’ compensation benefits. Workers’ compensation also covers employer negligence, if it was to occur. For more information regarding workers’ compensation, refer to our blog Three Important Workers Comp Questions.

How to Save Money on Your Worker’s Compensation Policy

There is nothing wrong with saving money on any of your insurance policies. As an employer with workers’ compensation insurance, you can use these two methods to help you save money.

1. Education: Making sure that your employees have the proper training is the best way to avoid accidents in the workplace. By training your employees, they can learn how to deal with certain situations—should they arise. In Massachusetts, the Office of Safety gives employers the opportunity to receive up to $25,000 in order to train their employees, if eligible.
2. Safety Enforcement: Having a couple of employees monitoring and enforcing safety can benefit not only you, but your employees by reducing the likelihood of an injury.

If you are a newly established restaurant, one of the first responsibilities, as the owner, is to acquire worker’s compensation insurance for your employees. Protecting your employees with workers’ compensation insurance gives them a guarantee of a better workplace. Have any questions regarding workers’ compensation insurance? Call H&K Insurance today and we will be more than happy to help you out!