The hands-on nature of food and beverage businesses leaves you and your employees at risk of physical injury that could impact (or even prevent) your ability to work.
Most importantly, the numbers back this up. Workers compensation insurance claims are common in the food and beverage industry, and costly, too.
From overexertion injuries to slips and falls, let’s explore workers comp stats that prove the importance of having coverage — whether or not you’re legally required to have it.
Workers Compensation at a Glance
Every state has workers compensation laws that determine what benefits an employee can receive if they injure themselves on the job or develop a work-related illness. This typically includes:
- Medical costs
- Lost wages
- Disability benefits
- Funeral costs
These expenses can place a significant burden on you, the employer. That’s why all states except Texas require you to purchase workers compensation insurance to cover those costs.
However, workers compensation laws vary from state to state. These regulations determine which employees qualify for coverage, what benefits are provided, and how many employees you can have before you’re required to purchase insurance.
Learn more about workers compensation insurance, from what it covers to how requirements vary between states.
The Top 5 Most Common Workers Compensation Claims
Workers compensation incidents happen more often than most people realize. According to its 2024 annual report, the Bureau of Labor Statistics found that private industry employers reported 2.6 million non-fatal workplace injuries and illnesses in the U.S.
While the overall number of incidents decreased from 2023, this statistic shows just how common job-related accidents are. These injuries often result in employees claiming workers compensation benefits, meaning either your business or your insurance policy would need to cover the cost.
Here are the most common work-related claims each year, according to the 2024 Injury Impact Report created by Travelers — a trustworthy workers compensation insurer in the U.S. These types of injuries made up the majority of all claims made in a year.
1. Overexertion (29%)
Overexertion is the most common cause of workers compensation claims, making up 29% of the claims Travelers analyzed in its study.
When an employee overexerts themselves at work, it means they pushed their body beyond its limits and suffered a muscle sprain, strain, or other injury.
Causes:
- Repetitive motions
- Lifting, pushing, or pulling heavy objects
- Sudden movements
- Long periods of physical exertion
- Working in an awkward position
Example: You hire a dishwasher for your restaurant. Their normal job duties require them to lift heavy racks of dishes repeatedly throughout the day. After five months on the job, they develop pain in their lower back from a herniated disc caused by this repetitive physical exertion.
2. Slips, Trips, and Falls (23%)
While slips, trips, and falls weren’t the most common workers comp claims, Travelers found they topped the list of the most expensive types (costing $250,000 or more).
It might be easy to brush aside a tumble here and there as harmless, but when they do result in injury, it can place a huge financial burden on your business if you aren’t insured.
Causes:
- Wet or greasy floors
- Cluttered walkways
- Stepping into/out of a food truck
- Tripping up or down the stairs
Example: Your mobile bartending business is serving drinks at a wedding reception. One bartender spills a drink behind the bar, but before they can clean it up or place a “wet floor” sign, your barback slips and fractures his wrist.
3. Being Struck by an Object (12%)
This category includes instances where items fall, tip over, or are propelled forward into an employee, causing an impact injury.
Causes:
- Stacks of crates falling over
- Cookware or diningware falling off a shelf
- Off-balance equipment tipping over
Example: While unloading crates from your catering van, a stacked chafing dish carrier slides out unexpectedly and slams into your employee. The force knocks her backward, and she suffers a shoulder sprain and concussion after hitting her head on the ground.
4. Motor Vehicle Accidents (5%)
Employees who drive for work are vulnerable to car accidents, just like any other driver. However, most personal auto insurance policies don’t cover work-related accidents.
If your employees drive as part of their job duties, they could be involved in a motor vehicle accident while making deliveries, picking up supplies, traveling to events or various locations for work, or operating a food truck/trailer.
Causes:
- Distracted driving
- Weather conditions (rain, snow, or hail)
- Rushing to stay on schedule
- Late-night/early morning driving
- Fatigue
Example: Your employee is driving your food truck to a local festival when another vehicle rear-ends them at an intersection. The impact from the collision gives them a neck sprain, and their doctor determines they need to be on light duty for the next three months to recover.
5. Caught-In or Caught-Between Hazards (5%)
These incidents happen when someone’s body (or body part) is pinched, trapped, or crushed between objects, equipment, or machinery.
Causes:
- Malfunctioning equipment
- Loose clothing, gloves, jewelry, or hair
- Working between vehicles or equipment
- Improper use
- Insufficient training
- Unstable stacks of inventory/equipment
Example: The employee you recently hired forgets to take off all of her jewelry before starting her shift. While using a stand mixer, her bracelet gets caught on the rotating paddle, pulling her wrist into the bowl. She suffers a sprain and fractures two finger bones as a result.
Food & Beverage Industry-Specific Workers Compensation Stats
The above types of claims are common across all industries, including the food and beverage sector. But just how common are workplace injuries and illnesses for various types of businesses in this sector?
Unfortunately, there is no single national database for workers compensation claims by industry. However, we can learn a lot from the most recent data released by the Bureau of Labor Statistics in 2023. This report shows how many full-time employees (FTEs) reported workplace injuries or illnesses.
Note: These incidents were recorded by the Occupational Safety and Health Administration (OSHA) and did not necessarily lead to workers compensation claims. However, most workers comp claims stem from OSHA-recorded events.
Food & Beverage Services
- Restaurants: 2.3 cases per 100 FTEs
- Full-service: 2.1 cases per 100 FTEs
- Limited-service: 2.6 cases per 100 FTEs
- Special food services (caterers, concessionaires, mobile food vendors, etc.): 3.7 cases per 100 FTEs
- Drinking establishments: 1.4 cases per 100 FTEs
Food & Beverage Manufacturing
- Food manufacturing: 3.6 cases per 100 FTEs
- Beverage manufacturing: 3.6 cases per 100 FTEs
- Soft drink & ice manufacturers: 5 cases per 100 FTEs
Why These Workers Compensation Trends Matter for Your Business
Workplace injuries and illnesses happen every year to full-time employees across the food and beverage industry. While a 2–5% chance of injury may seem small at first, it doesn’t seem that way when you consider the financial impact.
According to the most recent research conducted by the National Safety Council (NSC), the average cost per worker injury is $43,000. This includes lost wages, medical expenses, administrative expenses, employer costs, and damage to motor vehicles (but no other property damage).
Plus, researchers found the cost per worker was $1,080, which refers to the value of goods and services a worker must produce to offset the cost of a job-related injury.
The takeaway? Workplace injuries are common and costly, no matter what type of food or beverage business you run.
Is Workers Comp Insurance Worth It? (Hint: Yes!)
Even if you aren’t legally required to carry workers compensation insurance because you live in Texas or haven’t reached the minimum employee threshold in your state, workers compensation insurance is always worth the cost.
Ask yourself: Can your business afford to cover $43,000+ if an employee gets injured or develops a work-related illness? The answer for most businesses is no, which is why workers comp coverage is there to help.
This insurance gives you and your workers priceless peace of mind, knowing they will be financially taken care of in the event of an accident.
Your employees do so much to ensure your business’ lasting success. Do right by them and comply with legal requirements by getting workers compensation insurance from Food Liability Insurance Program (FLIP) today!
Note: FLIP’s workers compensation policy is available in all states except OH, ND, WA, and WY. These states require employers to purchase insurance through a state fund, not a private provider like FLIP.
FAQs About Workers Compensation
How Much Does Workers Compensation Cost for Food or Beverage Businesses?
On average, most small businesses pay $542 per year for workers comp coverage. However, the cost varies widely depending on these factors:
- The state(s) your employees work in
- Your annual payroll
- The number of employees you have
- Your industry
- What type of work your employees perform
- If you’ve ever filed a workers compensation claim before
Can I Get Workers Compensation Insurance If I Have No Employees?
Yes! Some sole proprietors purchase workers compensation coverage because they may be contractually required to. Others get insured because work-related injuries and illnesses are often excluded by health insurance policies.
It’s worth looking into your health insurance policy’s exclusions to see if you need workers comp in case of a job-related accident.
What Kind of Illnesses Are Covered by Workers Compensation Insurance?
Workers compensation benefits can cover illnesses such as:
- Occupational diseases (illnesses caused by long-term or repeated exposure to harmful substances)
- Infectious or communicable diseases (if exposure happens as part of the job, not from the larger community)
- Respiratory infections caused by exposure to a harmful substance
- Chemical burns or allergic reactions caused by exposure to a harmful substance
- Stress-related or mental health conditions caused or worsened by the work environment
However, benefits vary by state, so this list does not guarantee coverage.
Alex Hastings
Seattle-based copywriter and (WA) licensed insurance agent Alex Hastings leverages her experience as a lover of fast-casual food, baked goods, and iced oat milk lattes. She holds a B.A. in Creative Writing from Western Washington University. Before working at Veracity, she was a retail copywriter at Zulily and an English language teacher in South Korea. Alex is fully trained on FLIP insurance coverages and writes content that connects food and beverage business owners with the policies they need.
Seattle-based copywriter and (WA) licensed insurance agent Alex Hastings leverages her experience as a lover of fast-casual food, baked goods, and iced oat milk lattes. She holds a B.A. in Creative Writing from Western Washington University. Before working at Veracity, she was a retail copywriter at Zulily and an English language teacher in South Korea. Alex is fully trained on FLIP insurance coverages and writes content that connects food and beverage business owners with the policies they need.
Kyle Jude
Kyle Jude is the Program Manager for Food Liability Insurance Program (FLIP). As a dedicated program manager with 10+ years of experience in the insurance industry, Kyle offers insight into different coverages for food and beverage business professionals who are looking to navigate business liability insurance.
Kyle Jude is the Program Manager for Food Liability Insurance Program (FLIP). As a dedicated program manager with 10+ years of experience in the insurance industry, Kyle offers insight into different coverages for food and beverage business professionals who are looking to navigate business liability insurance.