Medical treatment, lost wages, disability, rehabilitation, and death benefits for job-injured employees, plus employer’s liability. Kitchens are high-injury environments, so this is a core, not optional, coverage.
Reviewed by a licensed commercial insurance agent. Last updated .
Workers' compensation pays medical bills, lost wages, and disability for employees hurt on the job — the burns, cuts, and slips a kitchen produces constantly. It is mandatory in 48 states and D.C. once you hit the state's employee threshold; Texas is the only state where private employers can opt out.
What it covers
Medical treatment, lost wages, disability, rehabilitation, and death benefits for job-injured employees, plus employer’s liability. Kitchens are high-injury environments, so this is a core, not optional, coverage.
Who needs it
Any restaurant with employees, once it reaches the state's threshold — which ranges from 1 to 5 workers and often counts part-timers. Assume you need it and confirm the trigger in your state.
Typical cost
Insureon restaurant median is about $113/month (~$1,359/yr). Rates run roughly $1.03–$1.06 per $100 of payroll for the main restaurant class codes; premium is payroll times rate, adjusted by your experience mod.
Varies by state?
Yes — requirements and pricing differ by state.
Requirements vary by state — and by headcount
Workers' comp is mandated in 48 states plus D.C.; Texas alone lets private employers go without it ("non-subscriber"), which strips away key legal protections. Thresholds differ widely: Florida requires coverage at four employees, Georgia at three, and New York and Colorado at one — including part-timers, and sometimes family members. A few states (Washington, North Dakota, Ohio, Wyoming) run monopolistic state funds you must buy from.
Class codes and the annual audit
Your rate is driven by class code: full-service restaurants generally fall under NCCI code 9082 (Restaurant NOC) and fast food under 9083. Classifying kitchen, serving, and delivery staff correctly matters, because premium is based on actual payroll and is audited every year.
Misclassification is a real audit risk in food service. Department-of-Labor-cited research has found 10–30% of audited employers misclassified some workers, with hospitality among the most affected sectors. Under-report payroll or misclassify staff and the year-end audit bills you the difference.
What owners don’t expect
•Texas is the only state where private employers can legally skip workers’ comp.
•Employee thresholds range from 1 to 5 and often include part-time and, in some states, family members.
•Premium is payroll-based and audited annually — estimates that run low create a back-premium bill.
•Codes 9082 (full-service) and 9083 (fast food) are the common restaurant classifications.
•Monopolistic-state-fund states (WA, ND, OH, WY) require you to buy from the state, not a private carrier.
Common questions
Is workers’ comp required for a small restaurant?
In 48 states and Washington, D.C., yes — once you reach the state’s employee threshold, which ranges from one to five workers and often counts part-timers. Texas is the only state where private employers can opt out. Because kitchens injure staff so often, most restaurants with any employees should assume they need it.
Thresholds vary: Florida requires coverage at four employees, Georgia at three, and New York and Colorado at one. Check your specific state, and remember that opting out where it is allowed strips away important legal protections.
What workers’ comp class code is a restaurant?
Full-service restaurants generally fall under NCCI class code 9082, "Restaurant NOC," and fast-food operations under 9083. Getting kitchen, serving, and delivery staff classified correctly matters, because your premium is calculated from payroll in each class code. Misclassification is a common and expensive finding at the annual audit.
Your rate per class code, multiplied by payroll and adjusted by your experience modifier, sets the premium. That is why an accurate split of payroll across codes is worth getting right up front.
How much is workers’ comp for a restaurant?
The median is about $113 per month, or roughly $1,359 a year, according to Insureon’s restaurant data. Rates run near $1.03 to $1.06 per $100 of payroll for the main restaurant class codes, so your cost scales directly with total payroll and with your claims history through the experience modifier.
Because premium is payroll-based, it is recalculated every year at audit. If your actual payroll came in higher than the estimate, you owe the difference.
Why did my workers’ comp premium change at the audit?
Workers’ comp premium is based on your actual payroll and correct job classifications, not the estimate you started with. If year-end payroll was higher than projected, or staff were misclassified across codes, the annual audit recalculates and bills the difference. Department-of-Labor-cited research found 10–30% of audited employers had misclassified some workers.
The fix is to estimate payroll realistically at renewal and keep classifications accurate as you hire, so the audit holds no surprises.
Cost examples are illustrative national figures gathered from public filings and industry surveys. They are not quotes. Your actual premium depends on your state, carrier, revenue, payroll, location, and coverage selections. Restaurant Insurance Authority is an insurance marketing and referral service, not an insurer or licensed agency. We connect business owners with licensed independent commercial-lines agents who specialize in food and beverage. Questions? Call (855) 480-1410.
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