If you own a business in Memphis, Nashville, or anywhere across the state, Tennessee workers’ comp insurance isn’t just about compliance—it’s about protecting your team and your bottom line.
This 2025 guide breaks down who needs coverage, what benefits it provides, how much it costs, and how the claim process works—based on the latest workers’ comp laws Tennessee 2025.
WHO NEEDS COVERAGE IN TENNESSEE?
Under Tennessee employer workers’ comp requirements, most businesses with five or more employees must carry coverage. That includes full-time, part-time, and even family members on payroll.
Construction Industry Rule
All construction companies must provide coverage—regardless of employee count. While business owners can file an exemption, employees must be covered. Construction workers’ comp Tennessee rules are strictly enforced due to the industry’s risk level.
Other Industry Rules
- Agriculture: Usually exempt unless five or more workers are regularly employe
Exemptions
- Sole proprietors and partners: Automatically excluded unless they opt in
- Corporate officers: Included by default but may opt out using Form I-6
Skipping coverage can lead to Tennessee workers’ comp compliance penalties ranging from $50 to $5,000 for various violations, with more severe penalties (up to $10,000) for failing to comply with Workers’ Compensation Specialist orders within required timeframes, plus potential criminal charges for repeat offenses.
WHAT DOES TENNESSEE WORKERS’ COMP COVER?
Workers’ compensation benefits Tennessee provides include far more than just medical bills. This system protects both the worker and the employer if an injury happens.
Key benefits include:
- Medical Treatment: Hospital stays, surgery, prescriptions, rehab
- Wage Replacement: Two-thirds (66.67%) of weekly pay, within state limits
- Vocational Rehab: Retraining for a new role if the employee can’t return to their job
- Death Benefits: Up to $10,000 for funeral costs plus ongoing family support
Tennessee doesn’t have a public fund, so employers must buy insurance from private carriers or qualify as self-insured through the Tennessee Department of Commerce and Insurance. If coverage is denied due to risk, the assigned risk pool through NCCI offers backup options.
COMMON CLAIMS & RISKS IN TENNESSEE WORKPLACES
Certain sectors file more claims—and pay more—because of the work involved.
Most common claims include:
- Overexertion injuries: Back and joint injuries from lifting—especially in warehouses
- Slip and fall incidents: Wet floors in restaurants or job sites
- Machinery accidents: Crush or amputation injuries in construction or manufacturing
- Transportation accidents: Motor vehicle crashes involving delivery or fleet drivers
For small business workers’ comp Tennessee filings, claims often arise from poor safety training or delayed response after an incident.
Want a simple breakdown of how workers’ comp works? Read our guide: Workers’ Comp Insurance Basics – What You Should Know.
WORKERS’ COMP INSURANCE COSTS TENNESSEE
Workers’ comp insurance costs Tennessee businesses an average of $0.81 per $100 in payroll. Your final premium depends on industry risk, payroll size, and claim history.
Cost factors include:
- Industry classification: Set by NCCI and tied to risk level
- Claims history: More past claims = higher premiums
- Safety programs: May reduce rates through credits
- Experience Mod Rate (EMR): A clean record can lower premiums long-term
For example:
- A business with $500,000 in payroll might pay around $4,000/year
- Office-based firms pay less
- Transportation and construction firms pay more due to risk
THE TENNESSEE WORKERS’ COMP CLAIM PROCESS
When an injury happens, following the Tennessee workers’ comp claim process is critical. Missing deadlines can cost benefits—or trigger fines.
Steps to follow:
- Employee must report the injury within 15 days
- Employer must notify their insurer within 1 business day
- Claim Filing Window: Formal claims must be filed within 1 year from date of injury.
- Dispute Process: Handled through the Bureau of Workers’ Compensation, starting with mediation before moving to formal hearings
BOTTOM LINE: DON’T SKIP COVERAGE
Failing to comply with workers’ comp laws Tennessee 2025 can lead to large fines, legal exposure, or criminal charges. Whether you’re managing a growing retail team or bidding on commercial construction contracts, the risks of going uninsured far outweigh the cost of coverage.
Next steps:
- Review your headcount—include part-timers and officers
- Ensure coverage for every construction worker
- Consider voluntary coverage if you’re self-employed
- File claims immediately—even for small injuries
Protect your team—and your business.
Call 855-718-7591 to speak with a licensed expert today.
