Workers compensation insurance for restaurants pays for medical care and lost wages when a cook, server, dishwasher, or other employee gets hurt or sick because of work. In California, every restaurant with even one employee must carry it, and it covers part-time staff too. It also protects you, because employees who receive workers comp benefits generally cannot sue you over the injury.
Panorama Insurance Agency has insured Los Angeles area businesses since 1973 from our Northridge office. As an independent agency, we shop restaurant workers comp with multiple insurance companies to find the right fit for your kitchen and your budget.
Is Workers Comp Required for Restaurants in California?
Yes. California law requires employers to have workers compensation insurance, even with just one employee. A few rules every restaurant owner should know:
- Not having workers comp is a criminal offense.
- Employees cannot pay for any part of the policy.
- Coverage applies to all workers, including part-time employees.
- It is illegal to punish or fire an employee for filing a workers comp claim.
Not sure who counts as an employee? Read Who Needs Workers’ Compensation Insurance.
What Does Restaurant Workers Comp Cover?
California workers comp provides these basic benefits to an injured employee:
- Medical care: prompt treatment for the injury or illness.
- Temporary disability: payments while the employee cannot work and is recovering.
- Permanent disability: payments if the employee does not fully recover.
- Supplemental job displacement benefit: a voucher for retraining if the employee cannot return to their job.
- Return-to-work supplement: a possible one-time payment for some employees who received the job displacement voucher.
- Death benefits: payments to dependents if an employee dies from a work injury or illness.
Most workers comp policies also include employer’s liability coverage, which helps in the limited cases where you can still be sued over a work injury.
Common Restaurant Injuries
- Burns and scalds from fryers, grills, ovens, and hot liquids
- Slips, trips, and falls on wet or greasy floors
- Cuts from knives, slicers, and broken glass
- Strains and sprains from lifting stock, kegs, and trays
- Repetitive strain injuries from chopping, scooping, and washing dishes
See more in Common Injuries Covered by Workers’ Comp.
What Workers Comp Does Not Cover
Workers comp is only for your employees’ work injuries. It does not cover:
- Customer injuries. A guest who slips in the dining room is a general liability claim.
- Food illness claims. A customer who gets sick from a meal is a liability claim, not workers comp.
- Alcohol-related claims. Injuries caused by a guest you served need liquor liability coverage. Read our liquor liability guide for restaurants.
- Damage your delivery driver causes to others. If a driver crashes while delivering food, the other driver’s car and injuries fall under auto coverage, not workers comp. See car insurance for food delivery workers.
- Wrongful termination or harassment claims. These need employment practices liability insurance.
- Owners, in some cases. Depending on how your business is set up, owners or officers may be included or left off the policy. Ask us which applies to you.
People you pay as “contractors” are another common gap. If they work like employees, they may need to be on your policy. Talk to us before you assume they are not covered.
How Much Does Workers Comp Cost for a Restaurant?
There is no single price. Your premium is based on:
- Payroll: rates are charged per $100 of payroll.
- Class code: the code that describes your type of restaurant.
- Experience modification: larger accounts get a rating based on their own past claims.
- Claims history and safety: fewer claims usually means better pricing over time.
- The insurer: each company prices restaurants differently, which is why shopping matters.
California Restaurant Class Codes Changed in 2024
For policies starting on or after September 1, 2024, California retired the old 9079 “Restaurants or Taverns” code and split it into new codes, including:
- 9080 Restaurants, full service
- 9081(1) Restaurants, not otherwise classified
- 9082 Caterers, not restaurants
- 9083 Restaurants, fast food or fast casual
- 9084 Bars or taverns, not restaurants
Sandwich shops, beverage preparation shops, and ice cream or frozen yogurt shops have their own codes. A wrong code can mean you pay too much, or face a bill after an audit. We check your code at every renewal.
To keep costs down, read 7 Proven Ways to Reduce Workers’ Comp Costs for Restaurants and How Workers Compensation Impacts Restaurant Profit Margins.
What to Do When an Employee Gets Hurt
- Get care first. Make sure the employee gets medical help.
- Give a claim form. Provide the DWC 1 claim form within one working day of learning about the injury or illness.
- Complete your part. Fill in the employer section of the returned form and give the employee a copy.
- Report it. Send form DLSR 5020 to your claims administrator within five days of learning about the injury.
- Stay involved. Keep talking with the employee and plan their return to work.
Need help with the paperwork? See How to Submit an Insurance Claim.
How to Lower Your Restaurant Workers Comp Premium
- Train every new hire on knife safety, lifting, and fryer and grill use.
- Keep floors dry with non-slip mats and a clear cleanup routine.
- Provide protective gear such as cut-resistant gloves, heat-resistant gloves, and slip-resistant shoes.
- Encourage early reporting so small injuries stay small.
- Report payroll accurately by class code to avoid audit surprises.
- Shop at renewal with your loss runs in hand.
Workers Comp Paperwork Landlords and Venues Ask For
Shopping centers, landlords, and catering venues often ask to see proof of your coverage. Some also ask for a waiver of subrogation on your workers comp policy. Learn more in What Is a Certificate of Insurance (COI)? and What Is a Waiver of Subrogation?
Other Insurance Your Restaurant May Need
Workers comp is one piece of a restaurant insurance plan. Most restaurants also look at general liability, property, liquor liability, and auto coverage for delivery or catering. See our restaurant insurance page, Food Business Insurance in California, and What Insurance a Restaurant Needs.
Why Restaurants in the San Fernando Valley Work With Panorama
We are an independent agency in Northridge, not a single-company agent. We compare workers comp quotes from multiple carriers, help you get the class code right, and can review your full restaurant coverage at the same time. Visit us at 19302 Citronia Street, Northridge, CA 91324, call (818) 781-6630 or (747) 277-7170, or email info@panorama-ins.com.
Restaurant Workers Comp FAQs
Do I need workers comp if I only have one employee?
Yes. California requires workers comp even if you have just one employee.
Are part-time and seasonal restaurant workers covered?
Yes. Workers comp benefits cover all workers, including part-time employees.
Can my employees pay part of the cost?
No. In California, employees cannot pay or offset the cost of the policy.
What happens if my restaurant does not have workers comp?
Failing to carry workers comp in California is a criminal offense. You would also be on the hook for the injured worker’s costs.
Does workers comp cover a customer who gets hurt?
No. Customer injuries fall under general liability insurance.
Which class code does my restaurant use?
Since September 1, 2024, most California restaurants fall under 9080 (full service), 9083 (fast food or fast casual), or 9081(1) (other restaurants). Bars and caterers have their own codes. We can confirm yours.
Can I bundle workers comp with my other restaurant policies?
Workers comp is a separate policy, but we can quote it together with your liability and property coverage so everything is reviewed at once.
Need a restaurant workers comp quote from multiple carriers? Contact Panorama Insurance or call (818) 781-6630.
