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How much does Louisiana Workers Compensation Insurance Cost for a New Orleans Restaurant Business?

by Tim D'Angelo

Job stress

Not many cities in the world rival the New Orleans area restaurant scene.  A local restaurant critic as of this writing claims 1,346 restaurants are open in the city.

If you intend to open a new restaurant or maybe you think you are paying too much for your Workers Compensation insurance policy,  read below for an idea of how much workers compensation insurance costs.

What is Workers Compensation Insurance?

Workers’ compensation insurance protects employers from claims resulting from injuries to employees. It protects your business from lawsuits and provides employees with compensation for on the job injuries.

By Louisiana law, most employers are required to provide workers compensation coverage for job related accidents or illnesses. 

How does an insurance company determine the cost of Workers Compensation?

Your Workers Compensation premium is based on Payroll and or Remuneration.

What is REMUNERATION? (but not limited to)

  • Wages, Salaries and Hourly Pay, including retroactive wages or salaries
  • Commissions
  • Bonuses
  • Overtime Pay
  • Vacation Time
  • Holiday Pay
  • Sick Pay

What Owner payroll limits are used to rate my policy?

If the owner is requesting to be included, the insurance company will use   

Executive Officers 41,600 minimum

Sole Proprietors 41,000 minimum/maximum

An Owner can be excluded for Workers Compensation benefits

What is the Restaurant Class Code used? 

Class Code 9082 Restaurant NOC

How much does Workers Compensation Cost for a Restaurant?

Rates can be in the range of 2.00-4.00 per $100 of payroll.  Preferred risks with a good loss history can negotiate lower rates and are eligible for premium credits.

example)

So if you have employee payroll of 65,000 the insurance company will generate the premium for your Workers Compensation using the formula below 

65,000 / $100 = 650 x 2.00 rate = $1,300 estimated premium

All rates per $100 of payroll will vary depending on loss history,  insurance company or self insured fund.  FM Agency Group offers Restaurant Workers Compensation quotes from multiple companies.  We see rates vary from insurance companies so make sure you get a few quotes.  

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