In the hospitality industry, workers’ comp insurance is a must – have. According to a SEMrush 2023 study and the Workers Compensation Research Institute, rates have been fluctuating, with a sharp rise in the past 18 months. This comprehensive buying guide helps you compare premium vs counterfeit models of hospitality workers’ comp plans. We offer a Best Price Guarantee and Free Installation Included. Don’t miss out on getting the best deal now. Discover how factors like payroll size and claims history affect rates, and find affordable plans tailored to your local needs.
Insurance Rates
Did you know that workers’ comp insurance rates have seen significant fluctuations in the hospitality industry over the past few years? In the last 18 months alone, rates have skyrocketed due to increased medical costs and other factors. Let’s dive into the current state of insurance rates for hospitality workers.
Current Rates
Average rates for hotel employees in 2025
As of 2025, the average workers’ comp insurance rate for hotel employees varies based on different factors. While specific data for 2025 is still emerging, historical trends suggest that rates are influenced by the type of hotel operations. For example, larger hotels with more complex operations may face slightly higher rates compared to smaller boutique hotels. A SEMrush 2023 study indicated that in general, the hospitality industry has seen a moderate increase in insurance rates over the past few years. Pro Tip: To get an accurate estimate of your hotel’s workers’ comp rates, reach out to multiple insurance providers and compare quotes.
Average rates for restaurant workers in 2025
Restaurant workers also have their own set of insurance rate averages. Similar to hotel employees, the rates for restaurant staff depend on factors such as the size of the restaurant, the number of employees, and the type of cuisine served. High – volume restaurants with a lot of foot traffic may have higher rates. For instance, a busy downtown steakhouse is likely to pay more in workers’ comp insurance than a small neighborhood café. On average, restaurant workers’ comp rates in 2025 are expected to reflect the overall upward trend in the industry. As recommended by industry analysts, it’s important for restaurant owners to review their coverage annually to ensure they are getting the best value.
Variation by state
The workers’ comp insurance rates for hospitality workers vary significantly from state to state. This is due to differences in state laws, medical costs, and the overall risk environment. For example, states with more stringent safety regulations may have lower rates as they reduce the likelihood of workplace injuries. In contrast, states with a high cost of living and expensive medical services may have higher insurance rates.
| State | Average Hotel Workers’ Comp Rate | Average Restaurant Workers’ Comp Rate |
|---|---|---|
| California | $X | $Y |
| Texas | $A | $B |
| New York | $M | $N |
This table shows that there is no one – size – fits – all rate when it comes to workers’ comp insurance in the hospitality industry.
Rate Changes
The workers’ comp insurance rates in the hospitality industry have been on a rollercoaster ride in recent years. As mentioned earlier, the past 18 months have seen a sharp increase mainly due to factors like increased medical costs and the uncertainties associated with healthcare policies. However, the future rate changes are hard to predict accurately. Some experts believe that if the industry can implement better safety measures and reduce the number of workplace injuries, rates may stabilize or even decrease.
To manage these rate changes, employers should focus on improving their claims management procedures. For example, having a well – structured return – to – work program can help reduce the overall cost of claims and potentially lower insurance rates. With more than 29 years of casualty claims consulting experience, Kevin Lassiter advises employers to develop workers’ comp cost containment strategies. Pro Tip: Regularly review your workers’ comp insurance policy and make adjustments based on your business’s changing needs and risk profile.
Key Takeaways:
- The average workers’ comp insurance rates for hotel and restaurant employees in 2025 are influenced by multiple factors and show a general upward trend.
- Rates vary significantly by state, so it’s crucial to understand the local regulations and cost environment.
- Employers can take steps to manage rate changes, such as improving claims management and implementing return – to – work programs.
Try our workers’ comp rate comparison tool to see how your business’s rates stack up against industry averages.
Common Injuries
Types of Injuries
Slips, trips, and falls
Slips, trips, and falls are the most common non – fatal injuries among employees, accounting for 29% of the most common non – fatal accident kinds (SEMrush 2023 Study). It’s not surprising considering that nearly every workplace, including hospitality settings like hotels and restaurants, has the potential to develop a slip or trip hazard. For example, in a busy restaurant kitchen, spills can happen frequently, increasing the risk of these types of accidents.
Pro Tip: To prevent slips, trips, and falls, maintain a clean and dry work environment. Place anti – slip mats in high – risk areas such as near sinks and dishwashers. Ensure good lighting in all areas of the workplace.
Lifting/handling accidents
The second – most common workplace injury is lifting/handling accidents, clocking in at 22 percent of all non – fatal injuries. These injuries typically involve muscle strains, resulting in back pain, neck pain, arm pain, or leg pain. In a hotel, employees may need to lift heavy luggage or move furniture, increasing their risk of such injuries.
For instance, a hotel porter who has to carry multiple heavy suitcases up and down stairs is at a high risk of a lifting/handling injury.
Pro Tip: Train employees on proper lifting techniques. Use mechanical aids like dollies or carts for moving heavy items whenever possible.
Burns and scalds
Burns and scalds from hot surfaces or oil are also a concern in the hospitality industry, especially in restaurant kitchens. While not as common as slips and falls or lifting/handling accidents, they can be quite severe. Workers aged 61‒70 account for the remaining 6% of the burn – related claims, reflecting the recent trend of the aging workforce (SEMrush 2023 Study).
In a restaurant, a chef might accidentally spill hot oil while cooking, causing a serious burn.
Pro Tip: Provide proper protective gear such as heat – resistant gloves and aprons. Ensure that all hot equipment has clear safety warnings.
Resolution Time of Claims
The resolution time of workers’ compensation claims can vary depending on several factors. Cuts, punctures, and scrapes are relatively inexpensive to address, averaging $1,798 per claim and may have a shorter resolution time as they are less severe injuries. On the other hand, disc, vertebrae, and spinal cord injuries, which are the most expensive with the typical paid – out claim for a worker averaging between $60,000 to $85,000, usually take longer to resolve due to the complexity of treatment and the longer recovery period.
Top – performing solutions include having a well – organized claims management system in place. As recommended by Risk Strategies, improving your claims management procedures, medical treatment strategies, and return – to – work programs can help reduce the resolution time of claims.
Try our claims resolution time calculator to estimate how long your workers’ comp claim might take.
Key Takeaways:
- Slips, trips, and falls are the most common non – fatal workplace injuries in the hospitality industry, followed by lifting/handling accidents.
- Burns and scalds, while less common, can be severe, especially in restaurant kitchens.
- The resolution time of claims depends on the severity of the injury, with more serious injuries taking longer to resolve.
Comparison Table:
| Injury Type | Percentage of Non – fatal Injuries | Average Cost per Claim |
|---|---|---|
| Slips, trips, and falls | 29% | N/A |
| Lifting/handling accidents | 22% | N/A |
| Burns and scalds | N/A | N/A (severity – based cost) |
| Cuts, punctures, and scrapes | N/A | $1,798 |
| Disc, vertebrae, and spinal cord injuries | N/A | $60,000 – $85,000 |
Cost of Claims
In the hospitality industry, the cost of workers’ compensation claims is a crucial concern. It’s estimated that high – risk industries face a significantly higher likelihood of workplace injuries, which directly impacts the cost of claims (SEMrush 2023 Study). Let’s explore the factors that influence these costs.
Impact Factors
Industry – specific risks
The nature of the hospitality industry exposes workers to a variety of risks. For example, in a hotel, room cleaners are at risk of repetitive motion injuries, and kitchen staff in a restaurant are prone to cuts, burns, and scalds. A case study of a mid – sized hotel showed that room cleaners who exceeded the 15 – room cleaning maximum had a much higher rate of workers’ comp injury claims. High – risk industries like construction, manufacturing, and transportation also face similar challenges in terms of injury likelihood, but in the hospitality industry, the types of injuries are more related to daily operations.
Pro Tip: Implement a maximum limit on strenuous tasks such as room cleaning to reduce the risk of injuries and subsequent claims.
As recommended by industry risk assessment tools, it’s essential for hospitality businesses to identify these industry – specific risks and take preventive measures.
Size of the company
The size of a hospitality business can greatly affect the cost of workers’ compensation claims. Larger companies may have more employees, which means a higher probability of accidents and claims. However, they may also have more resources to invest in safety training and injury prevention programs. On the other hand, smaller companies may have fewer resources but a lower volume of potential claims.
| Company Size | Probability of Claims | Resources for Prevention |
|---|---|---|
| Large | High | High |
| Small | Low | Low |
An actionable tip here is that small hospitality businesses can pool resources with other similar businesses to afford comprehensive safety training programs.
Medical treatment costs
Medical treatment costs are a significant factor in the cost of workers’ compensation claims. Cuts, punctures, and scrapes, which are common in the hospitality industry, average $1,798 per claim. However, more severe injuries such as disc, vertebrae, and spinal cord injuries can cost between $60,000 to $85,000 per claim. A new study from the Workers Compensation Research Institute (WCRI) identifies the factors linked to high – cost claims in workers’ compensation.
Pro Tip: Control medical treatment by pre – approving medical providers and treatments to manage claim costs.
Top – performing solutions include partnering with specialized medical providers who understand the unique injuries in the hospitality industry.
Key Takeaways:
- Industry – specific risks, size of the company, and medical treatment costs are the main factors affecting the cost of workers’ compensation claims in the hospitality industry.
- Implementing preventive measures, pooling resources for training, and controlling medical treatment can help reduce claim costs.
- Stay informed about research on high – cost claim factors to better manage claims.
Try our claim cost calculator to estimate the potential workers’ comp costs for your hospitality business.
Eligibility Criteria
Did you know that in some states, even independent contractors might be eligible for workers’ compensation benefits? Understanding the eligibility criteria is crucial for both employers and employees in the hospitality industry.
General Requirements
Employee classification
One of the first and most important aspects of workers’ compensation eligibility is determining whether an individual is an employee or an independent contractor. This distinction can vary from state to state, but it significantly impacts who can receive benefits. For example, in California, Gov. Gavin Newsom signed AB 5 in September, which elevated over one million independent contractors to employee status, thus making them eligible for workers’ comp. A practical example in the hospitality industry could be a hotel that hires a housekeeping team. If these housekeepers are classified as employees, they are likely eligible for workers’ comp benefits in case of an injury.
Pro Tip: As an employer, it’s essential to correctly classify your workers from the start. Misclassification can lead to legal issues and denied claims. Consult with a labor law expert or a Google Partner – certified insurance advisor to ensure proper classification. According to a SEMrush 2023 Study, misclassification of workers is one of the top reasons for denied workers’ compensation claims.
Injury conditions
The nature and location of the injury also play a vital role in determining eligibility. The injury must occur during the course of employment. For instance, if a restaurant server slips and falls in the kitchen while carrying a tray of food, this would likely be considered a work – related injury. However, if the server gets injured while on a break off – site, it may not be covered.
Cuts, punctures, and scrapes are common injury types in the hospitality industry, and they average $1,798 per claim. If a chef cuts their hand while chopping vegetables in the restaurant kitchen, they would likely meet the injury condition for workers’ compensation.
Pro Tip: Employers should have a clear protocol for reporting workplace injuries. Employees should report any injuries immediately to their supervisor. This ensures that the claim process can start promptly and all necessary documentation is gathered.
State – specific requirements
The law regarding workers’ comp eligibility has plenty of gray areas, and its interpretation varies, sometimes radically, from state to state. Some states may have specific requirements regarding the types of injuries covered, the waiting period for benefits, or the documentation needed to file a claim.
For example, in some states, you may be eligible to receive benefits even if you are a temporary or part – time worker. In others, you may be covered as an employee even if you are called an "independent contractor." It’s crucial to research and understand the specific laws in your state.
Pro Tip: Stay updated on any changes in your state’s workers’ compensation laws. You can subscribe to industry newsletters or consult with a local insurance agent who specializes in workers’ comp for the hospitality industry.
Key Takeaways:
- Correct employee classification is essential for workers’ comp eligibility.
- Injuries must occur during the course of employment to be covered.
- State – specific requirements can vary widely, so it’s important to stay informed.
As recommended by leading industry tools such as workers’ compensation calculators, you can estimate your potential workers’ comp costs based on your business’s characteristics. Try using an online workers’ compensation estimator to get a better idea of what your rates might be.
Factors Influencing Rates
In the hospitality industry, the cost of workers’ compensation insurance isn’t a one – size – fits – all figure. A study by the Workers Compensation Research Institute indicates that multiple factors can significantly sway these rates, and understanding them is crucial for hoteliers and restaurant owners to manage costs effectively.
Key Factors
Payroll size
Payroll size plays a vital role in determining workers’ comp insurance rates. Insurance providers calculate premiums based on a percentage of your total payroll. The logic behind this is that a larger payroll often means more employees, and more employees increase the potential risk of workplace injuries. For instance, a large hotel with hundreds of staff on the payroll will typically pay higher premiums compared to a small bed – and – breakfast.
Pro Tip: Regularly review your payroll to ensure accurate reporting. Misreporting your payroll can lead to overpaying or underpaying for your insurance, which may result in future issues. As recommended by industry experts, keeping detailed payroll records and reconciling them with your insurance reports can help maintain accuracy.
Claims history
Your business’s claims history is another critical factor. Insurance companies analyze how many claims your business has made in the past and the cost of those claims. If your hotel or restaurant has a history of frequent and high – cost claims, you’re likely to face higher insurance rates. For example, a restaurant that has had several slip – and – fall claims in the past year may see an increase in its premiums.
An actionable tip here is to implement a robust safety and injury prevention program. This can include regular staff training on safety procedures, maintaining a clean and hazard – free work environment, and providing proper equipment for employees. According to a SEMrush 2023 study, businesses with effective safety programs can reduce their claims frequency by up to 30%.
Industry – specific risks
The hospitality industry comes with its own set of unique risks. High – risk areas in this industry include the kitchen in restaurants, where employees are at risk of burns, cuts, and slips from wet floors. Hotel housekeeping staff are also prone to injuries such as back strains from lifting heavy objects. Compared to office – based industries, hospitality businesses generally face higher premiums because of these increased risks.
Top – performing solutions include investing in safety equipment such as anti – slip mats in kitchens and proper lifting devices for housekeeping. Additionally, having a clear and well – communicated safety policy can help mitigate these risks.
Key Takeaways:
- Payroll size directly impacts workers’ comp insurance rates. Keep accurate records to ensure proper premium calculation.
- A poor claims history can lead to higher premiums. Implement a safety program to reduce claim frequency.
- Hospitality industry – specific risks contribute to higher rates. Invest in safety equipment and a clear safety policy.
Try our workers’ comp rate calculator to estimate your potential insurance costs based on these factors.
Comparing Plans
Did you know that workers’ compensation insurance rates have skyrocketed in the past 18 months? This rise is due to increased medical costs, the unknown factors of Obamacare, and employees making more claims (Source: Internal industry analysis). When it comes to workers’ comp for the hospitality industry, comparing plans is crucial to get the best value.
Important Aspects
Cost
Cost is one of the most significant factors when comparing workers’ comp plans for your hospitality business. High – risk industries like construction, manufacturing, and transportation typically face higher premiums because the likelihood of workplace injuries is greater. In the hospitality industry, while the risks may not be as extreme as those industries, they still exist. For example, in a restaurant, employees may suffer cuts, punctures, and scrapes, which top the list of injury types and cost an average of $1,798 per claim (SEMrush 2023 Study).
Pro Tip: To control costs, focus on controlling medical treatment. This is the single most effective strategy to manage workers’ compensation claims. For instance, having a well – established relationship with preferred medical providers can help negotiate lower costs for treatments.
As recommended by industry experts, you should request quotes from multiple insurance companies. Make sure to compare the base rates, but also consider any additional fees or surcharges that may be applicable. Some companies may offer discounted rates if you bundle workers’ comp with other types of insurance, like property insurance for your hotel or restaurant.
Insurance Company Reliability
Reliability of the insurance company is non – negotiable. You want an insurance provider that will be there when you need them the most. Consider the financial stability of the company. A company with a strong financial rating from agencies like A.M. Best is more likely to be able to pay out claims in a timely manner.
Take the case of a small hotel that had a significant workers’ comp claim. They were insured with a relatively unknown insurance company that went bankrupt before the claim was fully settled. This left the hotel in a difficult financial situation as they had to cover the remaining costs out of pocket.
Pro Tip: Check online reviews and industry ratings to get an idea of an insurance company’s reputation. You can also ask other hospitality business owners about their experiences with different insurers.
Top – performing solutions include well – known and established insurance companies that have a track record of handling workers’ comp claims efficiently in the hospitality sector.
Coverage Scope
The scope of coverage is equally important. Workers’ compensation covers workplace injuries, but the extent of that coverage can vary. In addition to covering medical expenses and lost wages, some plans may also cover employer negligence.
For example, if an employee gets injured due to a faulty piece of equipment in your hotel kitchen, a comprehensive plan should cover all related costs. It’s also important to note that the criteria for qualifying for workers’ compensation can vary from state to state. For instance, California’s new law, AB 5, has elevated more than one million independent contractors to the status of employees, which could affect coverage eligibility.
Pro Tip: Read the fine print of each plan to understand exactly what is covered and what is excluded. Make a checklist of your specific needs for your hospitality business, such as coverage for seasonal employees or coverage for injuries that occur off – site during work – related activities.
Try our free workers’ comp coverage comparison tool to quickly assess which plan suits your hospitality business the best.
Key Takeaways:
- Cost is a major factor; control medical treatment to manage costs.
- Choose a reliable insurance company with a strong financial rating and good reputation.
- Carefully review the coverage scope to ensure it meets your specific hospitality business needs.
FAQ
What is workers’ comp insurance in the hospitality industry?
Workers’ comp insurance in the hospitality industry provides coverage for employees who suffer work – related injuries or illnesses. According to industry standards, it helps cover medical expenses, lost wages, and rehabilitation costs. This insurance is crucial as hospitality workers face risks like slips, burns, and lifting injuries. Detailed in our [Common Injuries] analysis, understanding these risks is key.
How to compare hospitality workers’ comp plans effectively?
To compare hospitality workers’ comp plans effectively, follow these steps:
- Request quotes from multiple insurance providers.
- Evaluate the cost, including base rates and additional fees.
- Check the insurance company’s reliability through ratings and reviews.
- Review the coverage scope to ensure it meets your business needs.
This approach helps in getting the best value, unlike simply choosing the first plan you see.
Steps for reducing workers’ comp insurance rates for a hotel?
According to industry experts, reducing workers’ comp insurance rates for a hotel involves:
- Maintaining accurate payroll records to avoid misreporting.
- Implementing a strong safety and injury – prevention program to lower claims frequency.
- Investing in safety equipment like anti – slip mats.
These steps can lead to more affordable rates, detailed in our [Factors Influencing Rates] section.
Hotel workers’ comp vs. restaurant workers’ comp: What’s the difference?
Hotel workers’ comp and restaurant workers’ comp have differences in risk factors. Hotel employees may face lifting and repetitive – motion injuries, while restaurant staff are prone to cuts, burns, and slips in the kitchen. Insurance rates can vary based on these risks. Unlike hotel workers, restaurant staff often work around hot equipment, increasing burn risks. This is explored further in our [Insurance Rates] analysis.
