Misclassification Errors & High Turnover Don’t Have to Drain Your Profits
In the fast-paced world of restaurants, every penny matters—yet 40% of businesses (Workers Compensation Research Institute) are overpaying for workers’ compensation coverage due to misclassification errors and incorrect experience modifications. Between high turnover, fluctuating payrolls, and frequent claims, many restaurant owners unintentionally overspend on premiums.
Misclassifications & Overpayments
Employees often switch between tasks: serving, cooking, bartending, etc. Kirk Aguilera, Managing Partner and National Workers’ Comp Practice Leader at The Liberty Company Insurance Brokers, explains:
“Varied job roles can lead to incorrect class codes. Restaurants routinely pay thousands more than needed simply because their classifications don’t reflect actual duties.”
Stat Boost: A survey by the Institute of WorkComp Professionals found that 7 out of 10 businesses never audited their workers’ comp program independently, missing out on significant savings.
Success Story: 30% Reduction in Claims
One of our restaurant clients recently saved 30% on their annual workers’ comp renewal. By accurately classifying employees and introducing an injury triage protocol—catching minor sprains or cuts before they became costly claims—they dramatically lowered both premium and claim frequency.
Actionable Steps
- Review Class Codes Quarterly: Frequent turnover or job role changes can quickly skew your data.
- Consider an Injury Triage Service: Early intervention can reduce claims costs by 25% (NCCI).
- Perform Regular Independent Audits: Even a simple review can uncover hidden overcharges.
Recommended Resources
Is Your Restaurant Overpaying? It’s time to protect your margins by optimizing your workers’ comp program.
- Take Our 2-Minute Quiz to see if you’re leaving money on the table.
- After you submit, we’ll schedule a complimentary 20-minute call with Kirk to review your results and explore strategies tailored to your restaurant’s unique operational needs—whether that’s improving injury triage, fixing misclassifications, or adopting a new deductible plan.
