Ohio Restaurant Workers' Comp: BWC & Stop-Gap Explained

Restaurants in Ohio must carry workers’ compensation as soon as they have one employee regularly in service, and they must buy it from the Ohio Bureau of Workers’ Compensation, because Ohio is a monopolistic state where private carriers do not write workers’ comp. Because BWC coverage does not include employer’s liability the way a private policy does, most restaurants also add stop-gap employer’s liability.

This page is for Ohio restaurant, bar, cafe and food service owners who want to understand how the state system works, where the coverage gaps are, and how to keep claims and costs under control. If you are used to buying workers’ comp from a private carrier in another state, Ohio works differently.

Who must be covered under Ohio law

Under Ohio Rev. Code 4123.01(B), every employer with one or more employees regularly in service must carry workers’ comp. There is no minimum headcount, so one part-time dishwasher or a single weekend server is enough. Sole proprietors, partners, individuals incorporated as a corporation and family-farm corporation officers are generally not covered unless they elect coverage, which is a decision worth making deliberately if you work the line yourself.

How Ohio’s state-fund system works

Ohio is one of the few monopolistic workers’ comp states. Coverage comes only from the Ohio Bureau of Workers’ Compensation, and there is no private rating bureau: BWC sets its own rates. Between 1996 and 2000, BWC converted to NCCI-based manual classifications, and Ohio Admin. Code 4123-17-08 lists 9082 (Restaurant NOC) among its classifications. Your BWC account and classification determine how your payroll is rated, so confirm with BWC that every employee is assigned correctly.

The stop-gap gap and intentional-tort suits

A private workers’ comp policy in most states includes employer’s liability coverage for lawsuits tied to employee injuries. Ohio BWC coverage does not include it in the same way, which is why Ohio employers commonly add stop-gap employer’s liability, usually as an endorsement to a general liability or package policy. Even stop-gap has limits for employer intentional-tort claims.

Those claims are governed by Ohio Rev. Code 2745.01, which requires the employee to show the employer acted with intent to injure or with deliberate intent. There is a trap for kitchens: deliberately removing an equipment safety guard, such as the guard on a meat slicer, mixer or dough sheeter, creates a rebuttable presumption of intent. Keeping guards in place is both a safety practice and a legal one.

Penalties for going without BWC coverage

Under Ohio Rev. Code 4123.77, a noncomplying employer loses its workers’ comp immunity and can be sued directly by an injured employee, without the fellow-servant, assumption-of-risk or contributory-negligence defenses. During a lapse, BWC can also require dollar-for-dollar reimbursement of claim costs, assess penalties for late reporting and late payment, and file assessment liens. For a restaurant, a single serious burn claim during a lapse can become a direct business debt.

Kitchen and dining room injuries that drive claims

Burns — fryer oil changes, sauté flare-ups, steam from dish machines and hot sheet pans.
Cuts and lacerations — knives, slicers, mandolines, broken glass and can lids.
Slips and falls — wet dish areas, grease near the line, walk-in floors and icy back doors in winter.
Lifting and strain injuries — produce and beverage cases, stock pots, kegs and full bus tubs.
Workplace violence — robberies at late-night counters and drive-thrus, and disputes with intoxicated patrons.
Repetitive motion — scooping, portioning and long shifts of chopping.

How your BWC premium is figured

In broad terms, workers’ comp premium is built from payroll in each classification, multiplied by the rate for that classification, and then adjusted for your own claims experience. Restaurants with more reported payroll pay more, and restaurants whose claim costs run higher than expected for their classification see that reflected over time. Accurate payroll reporting and correct classification keep your premium tied to your real exposure.

Ways Ohio restaurants control comp costs

Most cost control happens in the kitchen. Use cut-resistant gloves at slicers and prep stations, keep equipment guards on, use oil-caddy or pump systems for fryer oil changes, lay slip-resistant mats and require non-slip shoes, and train staff on lifting. Keep limited cash at the register and post robbery procedures for late shifts. Report injuries promptly, keep incident notes, and bring injured employees back on modified duty when their doctor allows. Then pair BWC with stop-gap and the rest of your program.

Provident Financial Group is an independent agency. While your BWC policy comes directly from the state, we place stop-gap employer’s liability and your general liability, liquor and property coverage by comparing several carriers side by side, and we issue live certificates of insurance your landlord can accept. Call (866) 964-6660. For more on workers’ comp in other states, visit our sister site USA Workers Comp.

Frequently asked questions

Can an Ohio restaurant buy workers’ comp from a private insurer?

No. Ohio is a monopolistic state, and workers’ comp must be purchased from the Ohio Bureau of Workers’ Compensation.

Do I need coverage for one part-time dishwasher?

Yes. Ohio requires coverage for employers with one or more employees regularly in service, with no minimum headcount.

What does stop-gap add that BWC does not?

Stop-gap employer’s liability responds to certain employee injury lawsuits that BWC coverage does not address, though its coverage for employer intentional-tort claims is limited.

Am I covered as the owner if I work in my own kitchen?

Sole proprietors and partners are generally not covered unless they elect coverage through Ohio BWC, so check your status.

Need stop-gap and the rest of your Ohio restaurant program compared? Get Multiple Quotes within minutes.

Restaurant Workers’ Compensation in Ohio