Workers’ Comp Class Codes for Restaurants

At NPN Brokers, we work with businesses across many industries, including restaurants, to help them secure the workers’ compensation insurance they need. Restaurants are often considered high-risk businesses due to the fast-paced and physically demanding nature of the industry. This can make it challenging for restaurant owners to find proper coverage without the help of a specialized broker. NPN Brokers has extensive experience in securing workers’ compensation insurance for high-risk industries, ensuring that businesses like yours are covered adequately and affordably. If you would like to receive a workers’ comp insurance quote, give us a call at (561) 990-3022 or fill out our online quote form today.

Restaurants face unique challenges when obtaining workers’ compensation insurance. Employees are often exposed to hazards such as slippery floors, sharp kitchen tools, and high-temperature equipment, increasing the likelihood of workplace injuries. Without the right insurance coverage, these risks can pose serious financial and operational challenges for restaurant owners. By partnering with NPN Brokers, you gain access to tailored insurance solutions designed to protect your business and employees.

Securing workers’ compensation insurance through NPN Brokers is a simple and efficient process. We understand the complexities of the restaurant industry and have the expertise to ensure you are classified correctly under the appropriate workers’ comp codes. This precision not only helps you save on premiums but also ensures compliance with regulations, protecting you from potential penalties and audits.

What are the Common Workers’ Comp Class Codes for Restaurants?

Workers’ comp class codes are used to categorize businesses and employees based on the type of work they perform. For restaurants, some of the most common class codes include:

9082 – Restaurant NOC (Not Otherwise Classified) This code is typically assigned to full-service restaurants, including those that operate pizza places, sandwich shops, and concession stands. It covers a wide range of food service establishments that don’t fall into specific subcategories like fast food or bars.

9083 – Fast Food Restaurants This class code applies to establishments that prepare and serve food and beverages for consumption on or off the premises. Examples include quick-service restaurants such as pizza parlors, sandwich shops, and other casual dining locations focused on fast, efficient service.

9084 – Bars, Discos, and Lounges This code is designated for establishments where at least 50% of revenue comes from alcohol sales. Examples include bars, nightclubs, and lounges, which often have a higher risk profile due to activities like serving alcohol and managing crowded spaces.

Understanding these codes is critical for ensuring accurate classification and premium calculation for your restaurant. Proper classification helps mitigate risks and provides the coverage necessary to protect your business and employees.

Other Possible Workers’ Comp Class Codes for Restaurants

In addition to the common codes, there are other workers’ comp class codes that may apply to specific operations within the restaurant industry. These include:

9079 – Catering This code is used for businesses that provide catering services, either on-site or at external locations. Catering operations often involve additional risks, such as transportation and working in unfamiliar environments, which require distinct classification.

9058 – Food Service Operations This code applies to various food service operations, including those that do not fit neatly into traditional restaurant categories. It covers activities such as cafeteria-style services, institutional dining, and other specialized food service setups.

By understanding and applying the correct class codes, NPN Brokers ensures that your restaurant is accurately represented to insurance providers, reducing the likelihood of overpayment or compliance issues.

Importance of Proper Workers’ Comp Employee Classification

Proper workers’ comp employee classification is essential for any business, as it directly impacts the cost and accuracy of your workers’ compensation insurance. Class codes reflect the risk level of specific job duties, which in turn influences premium calculations. The more hazardous the job, the higher the class code and associated premium. Below are some of the reasons class code is important, which is especially true for restaurant businesses:

• Insurance companies rely on class codes to assess the inherent risks of different job types. Proper classification ensures that your employees’ roles are accurately represented, allowing insurers to price policies appropriately.
• Using the correct class codes helps businesses avoid overpaying or underpaying for workers’ compensation insurance. Fair premiums reflect the actual risk levels of your operations, providing financial predictability and stability.
• Misclassifying employees can lead to legal issues and penalties. Regulatory bodies expect businesses to classify workers correctly to ensure compliance with workers’ compensation laws.
• During insurance audits, inaccurate classification can result in premium adjustments, often requiring significant back payments. Proper classification protects your business from unexpected financial burdens.
• Minimizing workers’ compensation costs through accurate classification gives your business a competitive edge. By reducing overhead expenses, you can allocate resources to other areas of growth and improvement.

What if I Improperly Classify an Employee with the Wrong Class Code?

Improperly classifying an employee with the wrong workers’ comp class code can lead to numerous issues, including financial, legal, and operational challenges. Misclassification often results in inaccurate premium calculations, leaving your business vulnerable during audits or claims. Some of the issues for improperly classifying an employee can include:

• Insurance providers routinely audit businesses to verify employee classifications. If errors are discovered, you may be required to pay back premiums based on the correct classification, potentially leading to substantial financial strain.
• Intentional or unintentional misclassification can result in legal penalties, depending on your jurisdiction. Compliance with workers’ compensation regulations is essential to avoid lawsuits and fines.
• Incorrect classifications can negatively affect your ExMod, which determines future premium rates based on your claims history. A higher ExMod translates to increased insurance costs over time.
• Using a lower-risk code for high-risk jobs can result in underinsurance. In the event of a serious workplace injury, your policy may not provide sufficient coverage, jeopardizing both your employee’s well-being and your business’s financial stability.

By working with NPN Brokers, you can avoid these pitfalls and ensure that all employees are classified correctly under the appropriate workers’ comp codes.

Get a Workers’ Comp Quote for Your Restaurant

If you own a restaurant and need workers’ compensation insurance, NPN Brokers can help. We are highly experienced with the various class codes associated with the restaurant industry and will ensure your business is properly covered. Accurate classification and tailored insurance solutions can save you from future headaches, financial penalties, and potential legal issues.

Getting a quote is quick and easy. Simply give us a call at (561) 990-3022 or fill out our online quote request form. Our streamlined process allows you to receive a quote within minutes and obtain coverage in as little as 24 hours.

Let NPN Brokers provide you with the workers’ compensation insurance your restaurant needs. With our expertise, you can focus on running your business while we handle your insurance needs efficiently and professionally.