Big Changes for California Food and Drink Businesses

Photo by No Revisions on Unsplash

By:  Guest Author Nimisha Lotia, Sea Castle Insurance www.seacastleins.com

Get ready, restaurant and bar owners! California's Workers' Comp Insurance Board (WCIRB) is shaking things up to make things fairer for businesses like yours.

The WCIRB replaced the broad "Restaurants or Taverns" classification (9079(1)) with six more specific codes:

1. 9058: Hotels, Motels, or Short-Term Residential Housing – food or beverage employees

2. 9080: Restaurants – full service

3. 9081(1): Restaurants – N.O.C. (Not Otherwise Classified)

4. 9082: Caterers – not restaurants

5. 9083: Restaurants – fast food or fast casual

6. 9084: Bars or Taverns – not restaurants

   
   

Why the Change? For years, all kinds of food and drink businesses, from fine dining to fast food, were lumped together. But that's changing. The WCIRB realized that a one-size-fits-all approach wasn't cutting it.

What's Happening? Starting September 1, 2024, the WCIRB split up the old "Restaurants or Taverns" category into six new, more specific ones. This means:

• More Accurate Pricing: Your insurance costs will be based on the specific risks of your business, whether you're running a high-end restaurant, a bustling bar, or a quick-service joint.

  
  

• Better Safety Tips: The WCIRB will be able to tailor safety advice to your specific needs, helping you keep your employees safe and reduce accidents.

  
  

What Does This Mean for You? If you're a business owner, don't worry too much. For now, your rates won't change. The WCIRB is still gathering data to figure out the best way to adjust rates for each new category.

What You Can Do:

• Stay Informed: Keep an eye on updates from the WCIRB and your insurance agent.

• Prioritize Safety: Continue to invest in workplace safety measures.

• Consult Your Insurance Agent: Discuss your specific business needs and how the new classifications might affect you.

  
  

The Bottom Line: This change is all about creating a more level playing field for California's food and beverage industry. By better understanding the risks associated with different types of businesses, the WCIRB can help you keep your workers safe and your costs down.

Nimisha is the proud owner of Seacastle Insurance Agency (www.seacastleins.com), where she helps businesses find the right insurance solutions to meet their unique needs. She’s passionate about educating her clients on the ins and outs of insurance, making sure they understand what’s covered, what isn’t, and how to close any gaps in their protection.

Before starting her agency, Nimisha built a wealth of experience working in industries like education, software, retail, entertainment, and banking. This diverse background gives her a well-rounded perspective on business challenges and allows her to craft customized solutions for her clients.

When she’s not working,

Nimisha loves paddleboarding, running, and hiking, keeping her life active and balanced. She also values building meaningful connections and fostering a sense of community, both in her personal life and through her professional work.

Nimisha Lotia can assist you with all of your insurance needs. Contact her for a quote. Please email her at nimisha@seacastleins.com to set up a meeting.

To learn more about this topic, check out the news source at https://www.wcirb.com/research-and-education/food-and-beverage-service-industry-classification-changes.

2 Liquid Assets

One of our goals here at 2 Liquid Assets is to provide small businesses with referrals to obtain the essential products and services they need to be successful.  We align ourselves with other small businesses that provide quality and value to our customers. Please patronize Nimisha and let her know 2 Liquid Assets referred you!