How Retail Store Owners Can Protect Against Workers’ Comp Claims

Article Last Updated 03/13/2026

Article Reviewed by a licensed insurance professional: Sam Meenasian (CA dept of insurance license #0F75955).

Estimated reading time: 7 minutes

It feels like the tasks never end when you own a small business. From ordering supplies to working directly with customers, there’s nothing to do. So, it’s no surprise that many business owners struggle to stay on top of workers’ compensation.

Here’s something you won’t like to hear. Even less risky industries like retail aren’t immune to potential workplace injuries. Floors can still be slippery, repetitive injuries may occur, and merchandise can fall. And guess who’s in charge of paying for said injuries? Your workers’ comp insurance, or you personally if you’re not insured.

Below, we’ll discuss common retail employee injury claims and what causes them. We’ll also bring up prevention tips to help shop owners protect themselves.

Why Retail Can Be Risky

It’s true that there are other industries that are more dangerous than retail. However, working in retail isn’t as safe as you might think.

Retail work is often perceived as lower risk, but injury rates can still be significant. For example, BLS data for 2023 shows the total recordable case rate was 3.1 in Retail trade (NAICS 44–45) compared with 2.3 in Construction (NAICS 23).

But why is retail higher in reported injuries than construction? Retail involves a lot of lifting, frequent movements, repetitive motions, direct customer interactions, and late-night hours. This is all typically done in a fast-paced, often busy environment, making it a recipe for disaster.

Common Workers’ Comp Claims in Retail

1. Slips, Trips, and Falls

Slips, trips, and falls are the most common injuries among retail employees. Spills and leaks, freshly-mopped floors, weather track-in, and aisle obstructions are often to blame.

Prevention Tips:

• Add scraper mats to points of entry.
• Consider adding an anti-slip treatment to your floor.
• Make sure aisles are always clear of obstructions, like boxes.
• Execute an immediate spill clean-up policy for your team.

2. Lifting and Stocking Injuries

Lifting boxes and restocking shelves could be hard on the body. Regularly maneuvering heavy boxes and improper lifting techniques are big triggers of retail-related workers’ comp claims.

Prevention Tips:

• Store heavier, frequently handled items in the ‘power zone’ (roughly mid-thigh to mid-chest) to reduce bending and overhead lifting.
• Use mechanical aids (hand trucks/dollies/pallet jacks) and team lifts when appropriate.
• Keep bottom shelf-stockers protected with knee pads or a kneeling mat.
• Regularly rotate unloading and stocking duties.

3. Tool and Equipment Accidents

Retail workers use a variety of tools and equipment. These might include box cutters, scissors, ladders, and pallet jacks. Even the simplest tool could lead to a costly injury.

Prevention Tips:

• Swap out box cutters for self-retracting safety cutters.
• Post visual safety reminder posters or stickers.
• Train staff on how to safely use a ladder or stepladder.
• Make sure a first-aid kit is available just in case.

4. Repetitive Stress Injuries

It doesn’t matter how easy a task might seem. Repetitive motions, like scanning items or folding clothes, could cause injuries. These injuries aren’t just uncomfortable. They could eventually lead to long-term or recurring complications.

Prevention Tips:

• Implement micro-breaks for your staff.
• Encourage your team to engage in occasional stretches or exercises between tasks.
• Rotate staff on tasks every two hours.
• Use adjustable scanners, monitors, and other ergonomic equipment.

5. Workplace Violence and Customer Incidents

Attempted thefts and angry customers could potentially lead to physical strikes against employees.

Prevention Tips:

• Always have at least two team members work each shift, especially at night.
• Teach staff how to avoid confrontation.
• Install security cameras and/or a panic button.
• Hire on-site security to mediate situations.

The Hidden Costs of Workers’ Comp Claims

One workers’ comp claim could be more impactful than you might imagine. Claims like these don’t just affect you shortly after they occur. Its effects could linger for years.

These effects typically come in the form of higher premiums, reduced productivity, and time and money spent on training new workers to fill in the injured workers’ spots.

Indirect costs (coverage overtime, training, admin time, lost productivity) could sometimes match or exceed direct claim costs—varies widely by business and claim severity.

The number of claims you receive could also impact your Experience Modification Rate (EMR). Your experience modification factor could affect your workers’ comp premium—typically at policy renewal, based on your claims history compared to similar employers.

State Workers’ Comp Laws for Retailers

Workers’ comp varies from state to state. For example:

• California: California generally requires employers to carry workers’ comp coverage. Failure to do so could be a misdemeanor and may result in a fine of at least $10,000 and up to double the premium that would have been due (among other potential penalties).
• Texas: Workers’ comp isn’t required, but it is highly recommended.
• Florida: Construction employers generally need coverage with 1 or more employees; non-construction employers with 4 or more employees; agriculture has different requirements.
• New York: Mandatory even for small businesses with seasonal and part-time employees
• Illinois: Required for all businesses with one or more employees

If you have store locations across multiple states, it’s crucial to become familiar with each state’s requirements and abide by them accordingly.

Reducing Risks of Injury

Injury prevention shouldn’t be put off until a claim comes through. It should start now, before things occur.

Here are some recommendations to help retail shop owners keep their claims lower:

1. Regularly Host Safety Trainings

Safety training shouldn’t just be a one-time thing when new employees get hired on. Make sure to regularly train employees on safety. Remind them to keep aisles clear, use wet floor signs, and wear non-slip shoes.

2. Keep Your Store Neat and Tidy

Mess goes way beyond aesthetics. They also put your employees at an increased risk of injury. That said, make sure aisles are always obstruction-free and that there are no tripping hazards like cords present.

3. Rotate Tasks Among Staff

Repetitive movements increase the odds of overuse injuries. To avoid this, rotate staff on tasks regularly, from cleaning to restocking.

4. Implement Ergonomics

Reduce the frequency of workplace injuries by adding ergonomic equipment to your store. Things like cushioned mats, stools, footrests, or adjustable screens could help staff stay more comfortable. This is especially true for staff who stand for long periods or often engage in repetitive motions.

5. Utilize Resources from Your Insurance Company

Several insurance companies have free resources for business owners to use. This often includes training videos, free safety assessments, and more.

Real-World Example:

An employee was rushing around to restock a minimart when they slipped on rainwater that was tracked in from a customer. They twisted their foot during the fall and ended up breaking their ankle in two spots. This led to a costly surgery and months off work to recover.

Hypothetical example: the owner of the store filed a claim with their insurance company. Luckily, they completely covered the costs, but in response, they raised their premiums by 16%.

If the store owner had a weather mat in front of the door and/or non-slip floors, this claim could have easily been avoided. Even a wet floor sign could have reminded everyone to be cautious when walking on the slippery floor.

Here’s What to Do When a Claim Hits

A proactive response is important when an on-site injury occurs.

1. Seek medical attention for your employee, if needed.
2. Don’t wait to report the claim. Report injuries as soon as possible. Deadlines vary by state (for example, Florida DFS guidance: employer should report ASAP, no later than 7 days after knowledge)
3. Document what you could. This includes photos or videos of the scene, witness statements, and contact information, and the date and time of the incident.
4. Stay communicative with the injured employee and your insurer the entire time.

Prompt, adequate communication could make a difference in helping minimize the potential of legal trouble.

Five Key Takeaways

1. Retail employees have one of the top-most reported injury claims.
2. Common retail employee claims involve slips, repetitive use injuries, and lifting injuries.
3. Well-trained staff, a clean storefront, and proper ergonomics are key to minimizing injury risk.
4. Workers’ compensation laws vary by state, so take the time to learn about your state’s compliance.
5. Your claim costs could be lower with fast communication.

USA Business Insurance wants retail shop owners to have peace of mind when it comes to unexpected costs. We serve businesses in every state, from locally-owned clothing stores to well-established grocery stores.

Our goal is not only to prepare you with the coverage you need in case of an on-site injury, but to keep that coverage affordable.

Reach out to us today to find a policy that best suits your needs.

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