Workers’ Compensation in Hospitality: Key Insights

Workers in restaurants, hotels, and other hospitality businesses face a wide range of risks. A strong approach to safety and training can help employers protect their workers, reduce claims and control workers’ compensation costs.

Injuries in the Hospitality Industry

According to the Bureau of Labor Statistics, the leisure and hospitality sector experienced 273 fatal injuries in 2024, including:

• 105 violent acts
• 53 transportation incidents
• 38 falls, slips and trips
• 60 cases of exposure to harmful substances or environments
• 17 contact incidents

Additionally, BLS data show that the leisure, entertainment, and hospitality sector experienced a nonfatal occupational injury and illness rate of 2.8 per 100 full-time workers.

Although the hospitality sector is not the most dangerous line of work in the U.S., these statistics show that hospitality workers are exposed to hazards. They may slip on wet surfaces, suffer burns from hot surfaces or cleaning chemicals, or experience car crashes while delivering food.

Hospitality workers are also particularly vulnerable to acts of violence. Because they work with the public, they are sometimes exposed to abusive or dangerous individuals. Although extreme cases involving mass shootings garner the most attention, smaller acts of violence can also put workers in danger.

Some locations see frequent incidents. According to the Los Angeles Times, workers at a Carl’s Jr. in North Hollywood protested over safety concerns after violent interactions with customers.

Beyond the impact on employees, workplace injuries can create additional disruptions, affect morale, and contribute to higher workers’ compensation claims costs.

Workers’ Compensation in Hospitality

Worker injuries can lead to many negative consequences for employers, including reduced productivity and low workplace morale. Injuries also have a significant effect on workers’ compensation rates.

Three important factors that can affect your workers’ compensation premium are:

1. Your payroll
2. Your classification code rate
3. Your experience modification factor

Payroll is based on total gross wages paid to employees, while the classification code is based on the type of job being performed. Since mistakes can lead to higher rates, you can verify that these figures are correct. However, if you want to control your workers’ compensation premiums, it’s especially important to focus on the third component: your experience modification factor.

Your experience modification factor reflects your loss experience relative to what is expected for similar businesses. A claims history that compares unfavorably with similar employers increases your experience modification factor and premiums, while a better claims history has the opposite effect.

Reducing workplace injuries and claims can help improve your experience modification factor over time and control your workers’ compensation costs.

How to Keep Hospitality Workers Safe

• Conduct background checks. Safe hiring and driver qualification practices are some of your first lines of defense. Conduct all checks in accordance with applicable laws.
• Train employees. Don’t assume workers know how to use personal protective equipment, handle dangerous chemicals, or stay safe around kitchen equipment. Provide training for new hires as well as regular refreshers for existing employees. Also train workers on how to stay safe when confronted with violent customers and how to handle emergency situations.
• Invest in security. Security cameras and good lighting can help deter crime and keep your workers safe. You may also want to consider hiring security services, especially if your location has had previous incidents of violence or if your area has a high rate of crime.
• Prioritize safety. Create policies with safety in mind. For example, consider your procedures for taking out trash, working night shifts, or closing for the night. If your workers are put in dangerous situations, consider how you can change procedures or introduce safety controls to reduce the risk.
• Listen to concerns. Do your workers feel safe? Talk to workers or conduct surveys to gauge how team members feel. Also listen to complaints and safety concerns. If your employees don’t feel safe, consider what changes you could implement to remedy this.
• Watch for patterns. Repeated incidents can result in higher workers’ compensation costs and expose your company to increased liability. If you see a pattern of incidents, including incidents that did not lead to injury but could have, consider what changes you can implement to increase safety.

Workplace safety is only one part of a strong risk management strategy. Regularly reviewing your insurance program can help you identify coverage gaps, address emerging risks, and find opportunities to control costs. Heffernan Insurance Brokers offers specialized risk management and insurance programs for restaurants, hotels, bars, and other businesses in the hospitality sector. Learn how we can help you manage your risks while controlling your costs.