At a time when restaurants everywhere are trying to do more with less—thanks to staffing challenges, high labor and food costs and more—there’s significant demand on service staff both in the front and back of house. And as workers are moving faster and tending to more customers, it makes sense that there could be potential for an increase in injuries and on-the-job accidents that lead to more workers compensation claims being filed. While restaurants of all stripes have a budget for workers compensation claims, the cost can be variable if steps aren’t taken to minimize claims, leading to budget imbalances, big payouts and more. But minimizing—or at least controlling—workers compensation costs is easier than operators may think. Here are some tips and tricks for being more efficient and protecting employees.
Focus on injury control
Of course, the easiest way to limit workers compensation incidents and payouts is to minimize the number of injuries that occur on the job. Restaurant safety and health plans apply to all restaurant employees. Everyone should receive training on how to handle equipment safely and how to prevent injuries to themselves and others. Review comprehensive safety procedures that address the problem areas identified during the risk management analysis. The best training is incorporated into operational training so employees are not only learning how to do their jobs, they are learning how to do their jobs safely.
Operators should ensure that all employees are wearing the proper non-slip shoes and make sure there are non-slip mats in the front & back of the house. Furthermore, operators should perform daily spot checks in the back-of-house to determine any areas that may lead to unsafe situations—loose drain covers, walk-in coolers & freezers, etc.—and post signage to indicate certain behaviors that should be avoided to prevent injury, such as making sure all the proper safeguards in place when using equipment.
In the front of house, many workers compensation claims are the result slip-and-fall injuries, so ensuring floors and any steps are clean of free of debris and have the proper lighting is crucial for limiting claims.
By focusing on injury prevention first, operators can set themselves up for success when it comes to saving on workers compensation claims.
Be proactive in the insurance buying process
While workers compensation insurance renews only once a year, risk management is perpetual. Many restaurateurs may place too much confidence in their broker’s ability to properly advocate for the best pricing, terms and conditions on their behalf when it comes to the workers compensation buying process, and feel powerless when an unfavorable claim settlement occurs or unfavorable renewal comes in at the last minute. To avoid getting caught in this continuous cycle, operators can proactively work with their broker to set expectations and craft their narratives to best illustrate their loss control programs to insurance carriers.
- Loss runs will typically take the most time to get in (depending on carrier), but up to 10 business days is the longest anyone should expect to wait.
- Once all information is in, restaurateurs should work with their broker to highlight their loss control program (i.e., cut-proof gloves, non-slip shoes, etc.) and if a claim has occurred, what steps they have taken to remedy this claim to remove or mitigate similar claims from occurring.
- It typically takes an insurance carrier two to four weeks to properly review underwriting information and provide a quote.
- Restaurateurs should set quote deadlines two to four weeks out from the expiration of their current policy so that they can properly evaluate all quotes.
By being proactive, restaurateurs will manage their loss and exposure profiles and become a preferred risk. This will result in paying a lower premium and improve their cash flows instead of paying increased premiums every year when renewing their insurance.
This process can be challenging and confusing to know what’s best for a given restaurant or restaurant group, which is why it’s important to work with a partner who is a specialist in this industry and can that can offer guidance and help along the way.
Work with a risk management firm
For operators looking to make their workers compensation cost a controllable, like food and labor are, working with a risk management firm can be a big help. Brady Risk Management offers customized business protection plans for all types of restaurants, from brand new, single-unit concepts to large chains and everything in between. The experts at Brady Risk Management will help construct a claims oversight program that not only protects and supports employees, but also offers protection for businesses by analyzing operations and identifying where improvements can be made. To learn more about how to control workers compensation costs, visit www.bradyrisk.com.
This post is sponsored by Brady Risk Management