Do Restaurant Owners Have to Carry Workers' Comp on Themselves?
Usually not. In many states, coverage for the owner is optional, not automatic, even though coverage for employees is mandatory.
Are Sole Proprietors and Partners Required to Carry Coverage on Themselves?
Most state workers' comp laws are written to protect employees, not the business owner. If you operate as a sole proprietor or a partner with no employees, you typically are not legally required to buy coverage for yourself, though you are still required to cover anyone you hire.
What California's Rule Reveals About Owner Coverage
According to the California Division of Workers' Compensation, sole proprietors and partners may optionally purchase workers' comp coverage on themselves; it is not mandatory the way employee coverage is. Many other states follow a similar optional-election approach for owners.
Why Skipping Owner Coverage Is Still a Risky Bet
If you are working the line, expediting tickets, or covering a shift and get hurt, you have no coverage at all without an election to include yourself. You would be relying entirely on personal health insurance and savings, since there is no employer to be liable to when you are the employer. Many restaurant-specialist brokers recommend owners elect in, especially owners with real day-to-day kitchen or bar duties.
What Changes If You Operate Locations in Multiple States?
Owner-coverage elections are made state by state, and a valid election in one state does not automatically carry over to another. If you are opening locations across state lines, review our Workers' Comp for Multi-State Restaurant Groups guide before assuming your coverage travels with you. Full baseline requirements are covered on our Workers' Compensation Insurance page.
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