Workers Compensation Insurance for Restaurants in Texas: Coverage, Costs, and Requirements

Workers compensation insurance is not mandated for Texas restaurants, but the Texas non-subscriber system creates significant risk for restaurant owners who choose to opt out. WC covers your employees' work-related injuries and illnesses: medical treatment, lost wages, disability benefits, and death benefits. Texas restaurant employers who carry WC protect against costly litigation and maintain access to valuable legal protections.

Quick Answer

Estimated workers compensation premiums for Texas restaurant companies:

Business Size	Estimated Annual WC Premium
Small restaurant (1 to 5 employees)	$800 to $1,600 per year
Larger restaurant (6 or more employees)	$1,500 to $3,000 per year

Texas restaurant workers comp premiums are near the national average. Actual premiums depend on payroll, employee classification codes, and experience modification factor.

What Workers Comp Covers for Texas Restaurants

Kitchen Burns and Scalds

WC covers burns from hot oil, steam, ovens, grills, and hot liquids. Kitchen burns are among the most common restaurant workplace injuries.

Slip and Fall Injuries

WC covers slip and fall injuries on wet floors, grease spills, and kitchen surfaces. Wet conditions are constant in restaurant kitchens and service areas.

Knife and Cut Injuries

WC covers lacerations from knives, slicers, and food preparation equipment.

Back and Musculoskeletal Injuries

WC covers back injuries and musculoskeletal damage from heavy lifting, carrying trays and supplies, and extended standing during shifts.

Lost Wages and Disability

WC pays a portion of an injured employee's wages during recovery and provides permanent disability benefits for lasting impairments.

What Workers Comp Does Not Cover for Texas Restaurants

Customer Injuries

WC does not cover bodily injury claims from customers or third parties. General liability covers those third-party claims.

Liquor Liability

WC does not cover claims arising from alcohol service. Liquor liability insurance covers claims related to intoxicated patrons.

Non-Work Injuries

WC covers work-related injuries only.

Texas-Specific Considerations

Texas Non-Subscriber System

Texas is the only state that does not require employers to carry workers comp. Texas restaurant owners can opt out and become non-subscribers. However, non-subscriber restaurants lose the right to use comparative negligence and assumption of risk as defenses in employee injury lawsuits. Non-subscribers face full common-law liability for employee injuries. Most Texas restaurant employers carrying non-subscriber status purchase occupational accident insurance as an alternative, but it does not provide the same legal protections as WC.

Texas Division of Workers Compensation

Texas employers who elect to carry WC do so through private insurers regulated by the Texas Department of Insurance Division of Workers Compensation. Texas WC carriers must file rates with TDI.

Texas Restaurant Market

Houston, Dallas, San Antonio, and Austin are Texas's primary restaurant markets. The Texas restaurant industry employs hundreds of thousands of workers. Restaurant groups operating across multiple Texas locations typically carry WC to manage employee injury exposure and maintain predictable costs.

Certificate Requirements

Commercial landlords, property managers, and restaurant groups operating as franchisors commonly require WC certificates from restaurant operators.

Frequently Asked Questions

Is workers comp required for restaurants in Texas?

No. Texas does not mandate WC for any private employer. However, non-subscriber restaurants lose key legal defenses in employee injury lawsuits.

What happens if a Texas restaurant employee is injured and the restaurant has no WC?

Non-subscriber restaurants face full common-law liability for employee injuries. The employee can sue directly without WC exclusivity protections applying.

Does WC cover burns from a restaurant kitchen in Texas?

Yes. WC covers burns and scalds that occur during employment at any Texas WC-covered employer.

How much does workers comp cost for a Texas restaurant?

Texas small restaurants typically pay $800 to $1,600 per year for WC coverage, near the national average.

Does a Texas restaurant need WC to get a business lease?

Some commercial landlords and property managers require WC certificates from restaurant tenants. Check your lease requirements.

Disclaimer

This article is for informational purposes only and does not constitute insurance or legal advice. Coverage details and costs vary by carrier and individual circumstances. Consult a licensed insurance agent and attorney for guidance specific to your situation.

Sources

• Texas Department of Insurance Division of Workers Compensation
• Texas Restaurant Association
• Insurance Information Institute