What to Know about Workers’ Compensation Insurance

in Tennessee

Facts about Workers’ Compensation Insurance in Tennessee

Workers’ compensation insurance is designed to cover the costs associated with injuries and illnesses that your employees may experience on the job. In Tennessee, any businesses with at least five employees, and all businesses in the construction and coal mining fields, are required to carry this insurance. Family members and part-time workers are included in the overall employee count.

More Tennessee workers compensation insurance facts 

  • In Tennessee, workers suffer about 71,100 job-related injuries every year.
  • This equates to a rate of 3.0 injuries per every 100 workers.
  • About 37,700 of these injuries require time off work, job transfers, or work restrictions.
  • On average, there are 121 work-related fatalities in this state per year.

Cost of Workers’ Compensation Insurance in Tennessee 

In Tennessee, the cost of workers’ compensation insurance is only slightly higher than the national average. Rates are based on your business industry, the number of employees you have and the types of jobs they do, and your company’s overall payroll. While the rates for each job category are regulated by the Tennessee Department of Labor & Workforce Development, policies are issued by commercial providers, who are permitted to offer discounts of up to 25%. This means shopping around for the best price can potentially save your business a lot of money.

Average Cost Range for Workers' Comp Insurance in Tennessee (Per $50,000/yr in Payroll)

cost range of tennessee workers comp insuranc

Why Choose an Independent Insurance Agent?

  • Independent agents make it easy to compare rates and find the best price.
  • These agents live and work in your community and understand the risks in your area.
  • Your agent can provide one-stop shopping for all of your insurance needs.

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Our new business required us to have workers' comp insurance, so we shopped around until we found TrustedChoice. Their agent was able to walk us through the process and find us everything we had on our list. This was a good company to work with.

five star review Paige of Jackson, TN Consumer Affairs

What Does Your Workers’ Compensation Insurance Policy Cover? 

Workers’ compensation is designed for employees and employers alike. Employees can rest assured that treatment for their injuries and time off work for recuperation will not cause them large financial losses. Employers can avoid costly lawsuits related to these injuries. You can expect a standard workers’ compensation policy in Tennessee to cover the following:

  1. Medical treatment: Workers’ comp will cover medical treatment that is necessary to treat employee injuries. Injured employees can receive treatment from any of three doctors authorized by their employer.
  2. Mileage reimbursement: If an injured or ill employee must travel more than 15 miles one way in order to receive medical treatment from an authorized doctor, workers’ comp will reimburse them for their travel expenses.
  3. Temporary total disability payments (TTD): If an employee needs more than seven days off to recover from a workplace injury, workers’ comp can provide them with weekly payments of 2/3 of their average weekly wage. 
  4. Temporary  partial disability payments (TPD): If an injured employee is able to return to work but needs to be on light duty that pays less than their regular job, TPD can help to reduce the income gap by covering 2/3 of the difference.
  5. Death benefits: If a work-related injury or illness results in death, workers' comp can pay up to $10,000 in burial expenses and will provide a weekly benefit of 50% of the employee’s average pay to surviving dependents. If there are no dependents, $20,000 will go to the employee’s estate.

Top Insurance Companies That Support Independent Agents in Tennessee

There are currently 366 independent insurance agencies in Tennessee ready to help. These agents can answer your insurance-related questions, explain your coverage options, and assist you with finding the best workers’ compensation insurance policy to cover your particular company. Contact an agent near you to start comparing customized workers’ compensation insurance quotes.

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Why Go Independent When Looking for Workers' Comp Insurance?

  • Expertise in your business
  • Multiple quotes from one agent
  • Get more value for your money

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