NEXT is Tennessee’s best worker’s compensation insurance provider, scoring almost a perfect rating with 98 out of 100 points. The company provides reliable customer service, very low workers' comp rates, and a large coverage selection. However, Thimble and biBerk are good runners-up that you should also consider for coverage.
Cheapest Workers' Comp Insurance in Tennessee
Updated: June 3, 2025
Advertising & Editorial Disclosure
Key Takeaways
NEXT, Thimble, The Hartford, biBerk and Nationwide are the best cheap workers' comp insurance providers in Tennessee.
For most small businesses in Tennessee, workers' compensation coverage costs around $726 per year or $64 per month.
Workers' comp insurance is required in Tennessee for all companies with employees to cover expenses from employees sustaining injuries or illnesses during business activities.
Best Cheap Workers’ Comp Insurance Companies in Tennessee
| NEXT | 98 | $108 |
| Thimble | 90 | $154 |
| The Hartford | 89 | $217 |
| biBerk | 88 | $224 |
| Nationwide | 86 | $234 |
*Rates and scores are for software development businesses with small (five employees), medium (20 employees) and large (100 employees) operations, aggregated for an overall best recommendation.
NEXT: Best Overall
pros
Especially affordable rates
Highly rated customer service
Flexible customer service hours
cons
Not the cheapest option in Tennessee for larger businesses
COMPANY HIGHLIGHTS
NEXT dominates Tennessee's workers' compensation market with an impressive 4.7-star customer rating, competitive $108 average monthly rates, and coverage across 1,300 business categories. The company sets itself apart further through distinctive features like instant certificate access and 24/7 chat support, while delivering the state's lowest overall rates.
How Much Is Workers' Comp Insurance in Tennessee?
Depending on the size of your business in the Volunteer State, workers' comp rates vary anywhere from $726 to $5,387 per year. However, this only represents software development companies, and your rates will vary depending on the number of employees, the risk of your industry, the work your employees do individually and your claims history.
| Businesses with five or less employees | $64 | $726 |
| Medium-size small businesses | $130 | $1,497 |
| Larger small businesses | $466 | $5,387 |
Factors That Impact Workers’ Compensation Costs in Tennessee
The cost of workers' compensation insurance varies for each business, depending on several factors that influence coverage costs including the following: business type, location, payroll size, and claims history.
Payroll costs
Businesses typically pay workers' compensation rates based on each $100 of payroll. A business with higher payroll costs pays a higher premium than one with lower payroll costs. Tennessee's average premium index rate for 2022 is $2.26 per $100 of payroll, ranking third highest nationwide.
Number of employees
Companies with a large number of employees face a higher risk of employee injury, which can increase insurance premiums.
Employee class code
A class code identifies the type of work employees do. This code sets the rate charged for every $100 of payroll. High-risk industries like construction, mining and manufacturing typically have higher rates than lower-risk fields such as consulting, accounting and software development.
Previous claims
A history of workers' compensation claims can increase your premium.
Tennessee Workers' Comp Insurance: Buyer's Guide
Navigating business insurance is often a complicated task, so we've broken down how to get the best workers' comp coverage, who needs it, and what this type of policy covers to guide you.
How to Get the Best Workers' Comp Insurance in Tennessee
Below we detail the best steps to take to ensure you get the best workers' comp policy possible for your organization.
- 1
Learn about required coverages and options
Research your state's regulations first, as requirements and options vary widely. The coverage you need depends on your industry, organization size and claims history. Talk to a business insurance agent about what's right for your company before buying to avoid getting too much or too little workers' comp insurance.
- 2
Research costs and providers
Research average costs and providers for your specific business to determine which companies to get quotes from. Also, consider state-provided options and whether self-insurance is possible in your state.
- 3
Consult similar businesses
Talk to other businesses in your community, especially those similar to yours. Ask about their experiences, needs and coverage choices to help inform your decision more personally.
- 4
Compare multiple providers through different means
Get multiple quotes and compare providers on equal terms to find the best deal. Prices vary depending on how you get quotes — online comparison sites versus speaking with an agent. Use different methods and contact various companies to gain the most balanced view of what's best for your business.
Do You Need Workers’ Compensation Insurance in Tennessee?
The state enforces comprehensive workers' compensation insurance requirements across all business operations, though certain owner-operators may choose to exclude themselves from coverage obligations. Only sole proprietors, partners, and fully-owning corporate officers qualify for this exemption, while every other business entity must comply with mandatory insurance laws.
WORKERS’ COMP PENALTIES IN TENNESSEE
Employers in Tennessee must follow the law when it comes to workers' comp insurance. If they don't, they could face big penalties:
- Coverage proof fines - $50-$5,000 for failure to provide proof of coverage
- Premium penalty - 1.5 times annual premium for failing to maintain coverage or misclassifying employees
- Benefit payment penalty - 25% penalty for late or unpaid temporary disability benefits
- Order compliance fines - Up to $5,000 for failing to comply with administrator orders
- Daily penalties - $1,000 per day for continued non-compliance after 21 days
- Filing violations - $50-$10,000 for failing to file required forms and reports
- Lawsuit exposure - Employees can sue for damages exceeding workers' comp benefits
- Additional fines - Potential fines of $10,000+ for non-compliance
These are serious consequences that can hurt a business financially and legally. It's important for employers to have the right workers' comp insurance to avoid these risks.
What Does Workers’ Compensation Insurance Cover in Tennessee?
Workers' compensation insurance provides vital benefits to employees experiencing work-related injuries or illnesses. This coverage usually includes medical care, disability benefits, and lost wages, paying out 66% of weekly wages in Tennessee. It also protects businesses from legal claims related to workplace injuries or illnesses.
Best Workers' Compensation Insurance Tennessee: Bottom Line
In Tennessee, the top three workers' comp insurance providers are NEXT, Thimble, and biBerk. NEXT leads with an MG Score of 98 and the most affordable monthly premium at $108. Thimble follows with a score of 90 and a $154 monthly premium. biBerk rounds out the trio with an 88 MG Score and a $224 monthly rate. While these companies are our recommendations, we urge you to compare rates for yourself and consult similar businesses in your industry to get the best deal.
Workers' Comp Insurance in Tennessee: FAQ
Below are answers to frequently asked questions about Tennessee workers' comp insurance from our MoneyGeek experts:
Which company has the best workers’ compensation insurance in Tennessee?
In Tennessee, NEXT Insurance stands out with competitive pricing, averaging around $101 per month for medium-sized small businesses, and a commendable customer satisfaction record. Nevertheless, the right workers' compensation insurance for your company should consider your specific industry, workforce size, and any state-specific regulations.
Which company has the cheapest workers’ compensation insurance in Tennessee?
The Hartford is the most cost-effective workers' comp insurance provider for businesses with 5 or fewer employees in Tennessee. For medium-sized and larger small businesses, Thimble offers the cheapest options.
Does Tennessee require businesses to have workers’ compensation insurance?
Yes, Tennessee mandates workers' compensation insurance for all businesses, but individual owners and corporate officers may choose not to participate.
In Tennessee, workers' compensation insurance is required for all businesses. However, sole proprietors, partners, and sole corporate officers can elect to be exempt.
How much does workers’ compensation insurance cost in Tennessee?
On average, a medium-sized business in Tennessee with around 20 employees will spend $130 monthly on workers' compensation insurance.
How We Rated Workers' Comp Insurance Companies in Tennessee
MoneyGeek calculated workers' compensation insurance rates using a software development business with five, 20 and 100 employees to represent various organization sizes.
Our scoring methodology included:
- Affordability (60%): Overall cost compared to other providers and different business profiles
- Customer experience (30%): Ratings from actual customers, J.D. Power studies, AM Best financial stability ratings and our team's experience with quote processes
- Coverage (10%): Additional options beyond standard offerings and breadth of industries served
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
sources
- NEXT. "Customer Reviews." Accessed June 3, 2025.