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.
