MoneyGeek studied workers' compensation providers in Tennessee, evaluating affordability, customer satisfaction, financial stability and online quote process. Based on this, we found Thimble is the state’s leading workers’ compensation provider.
Tennessee law requires business owners to have workers' compensation insurance. This coverage offers protection against financial and legal risks, covering medical expenses, lost wages and potential lawsuits arising from work-related illnesses or injuries.
Best Workers’ Compensation Insurance in Tennessee
Best Workers’ Compensation Insurance in Tennessee
Thimble emerged as the top workers' compensation insurer in Tennessee, surpassing four other providers. It features the lowest premium at approximately $96 per month and the highest MoneyGeek score of 96 out of 100. It's important to note that your actual insurance cost may vary depending on your unique business factors.
How was this MoneyGeek score calculated?
- Provides the cheapest rates at $96 per month
- Offers a quick and efficient online quote process
- Holds an A+ rating from AM Best
Thimble is Tennessee's best workers' compensation insurance provider, per MoneyGeek's analysis. Established in 2016, Thimble specializes in insurance policies for small businesses.
This provider stands out by offering the most affordable premiums in Tennessee at around $96 per month. Alongside affordability, Thimble prioritizes a streamlined quoting process, enabling convenient comparisons with other insurance companies.
However, Thimble has a lackluster reputation for customer service, with a higher-than-average complaints ratio from NAIC. Nonetheless, it maintains an A+ rating for financial stability from AM Best, which attests to its strong financial position and ability to fulfill its obligations.
- Has the best reputation for customer service
- Provides swift online estimates
- Features an average monthly cost of $119
The Hartford is a financial services company headquartered in Connecticut. It stands out among workers’ compensation providers in Tennessee for its exceptional customer service, receiving the lowest NAIC complaints ratio in the state.
Additionally, The Hartford holds an impressive A+ rating for financial stability from AM Best. This score demonstrates a sound financial standing and an ability to meet obligations.
The average monthly cost of a policy from The Hartford is $119, which is moderately priced compared to others. The Hartford's quoting process is also quick, taking approximately 1 minute and 20 seconds.
- Delivers exceptional customer service
- Holds an A+ financial stability rating from AM Best
- Average cost of $135 per month
Founded in 2015, biBERK is an insurance provider that focuses on small businesses. While its monthly cost of $135 is relatively higher, biBERK compensates with its exceptional customer service. It maintains a low complaints rating from NAIC, indicating high customer satisfaction.
biBERK, as a subsidiary of the Berkshire Hathaway Company, also enjoys an impressive A++ rating for financial stability from AM Best. This score reflects its strong financial standing and ability to fulfill its obligations.
When it comes to obtaining a quote, biBERK offers a reasonably efficient process, taking approximately 1 minute and 24 seconds.
- Provides outstanding customer service
- Offers a quick and efficient online quote process
- Costs an average of $134 per month
Next, a Palo Alto-based insurance company, specializes in providing tailored products for small businesses. It has gained a reputation for providing exceptional customer service, with one of the lowest complaint ratios, according to NAIC.
Moreover, Next holds an A- rating for financial stability from AM Best, indicating a solid financial track record (albeit slightly lower than other providers).
On average, Next's workers' compensation policies come at a monthly cost of $134, placing them on the higher end of the pricing spectrum. However, Next offers a fast quote process, taking just 1 minute and 38 seconds.
- Provides excellent customer service
- Features an A+ rating for financial stability from AM Best
- Offers an average monthly cost of $136
Nationwide is an Ohio-based financial services company providing a range of insurance and other products for individual and business accounts. It has earned a positive reputation for its exceptional customer service, with fewer complaints reported to the NAIC than other insurers.
Moreover, being one of the largest insurance companies in the U.S., Nationwide demonstrates remarkable financial strength and stability, as evidenced by its A+ rating from AM Best.
However, the combination of its top-notch service and financial stability comes at a higher cost. The average monthly expense for Nationwide's workers' compensation insurance stands at $136, positioning it as the most expensive option in Tennessee.
Cheapest Workers’ Compensation Insurance in Tennessee
For businesses in Tennessee with 20 employees and an annual payroll cost of $1.25 million, Thimble stands out as the cheapest choice for workers' compensation insurance. On average, its policies cost $96 per month.
Insurance costs are influenced by the number of employees and the payroll size, as larger organizations tend to pose higher risks.
MoneyGeek recommends Thimble as the leading option for affordable workers' compensation insurance in Tennessee.
On average, Thimble’s policies cost $96 per month for businesses with 20 employees and $1.25 million in annual payroll costs. Aside from being the state’s cheapest option, Thimble offers an efficient quoting system online. These factors make it an ideal choice for cost-conscious business owners.
However, it’s important to note that Thimble has a higher complaints ratio according to the NAIC, indicating potential issues with its customer service.
To help you find the cheapest provider, we ranked workers' compensation insurance companies in Tennessee and focused on their average monthly costs.
We outlined the annual and monthly costs associated with insuring a business with 20 employees in the table below. However, the most affordable option for your specific small business may vary depending on various factors.
Best Workers’ Compensation Insurance for Micro Businesses in Tennessee
According to MoneyGeek's analysis, biBERK is Tennessee's top workers' compensation insurance provider for businesses with five employees. It costs approximately $57 per month for businesses with an annual payroll of $312,500.
In general, businesses with one to nine employees are classified as micro businesses. While the number of employees does influence the cost of workers' compensation insurance, payroll typically plays a more significant role in determining insurance costs.
MoneyGeek has chosen biBERK as the top workers' compensation insurance company for micro businesses in Tennessee. For businesses with five employees and an annual payroll of $312,500, a biBERK policy costs around $57 per month.
biBERK offers affordable rates and exceptional customer service, allowing small business owners to receive excellent support without straining their budgets.
Additionally, biBERK provides a quick quote process, making comparing rates with other insurance providers easy.
Best Workers’ Compensation Insurance for Midsize Businesses in Tennessee
Thimble is Tennessee's leading provider of workers' compensation insurance for midsize businesses. Companies with an annual payroll of $6.25 million can anticipate a monthly premium of around $311.
Although the number of employees does contribute to the cost of workers' compensation insurance, the payroll amount typically carries more weight in determining the premiums.
MoneyGeek's research identifies Thimble as the preferred option for workers' compensation insurance among midsize businesses in Tennessee. Thimble is more affordable than many competitors and has a streamlined quote process, making it an excellent option for cost-conscious midsize businesses.
Thimble also holds an impressive A+ rating for financial stability from AM Best, demonstrating strong financial standing and reliability.
However, Thimble has a higher-than-average complaint ratio reported by NAIC, suggesting potential challenges for some policyholders when dealing with claims.
How Much Is Workers’ Compensation Insurance in Tennessee?
Workers' compensation insurance for businesses with 20 employees in Tennessee has an average monthly cost of $124, which is below the national average of $168 per month.
Here are the limits for our sample policy:
- $1 million total policy limit
- $1 million per accident limit
- $1 million per employee limit
The total policy limit represents the maximum coverage for all claims combined. This ensures the insurer's payout won't exceed $1 million, even if multiple accidents or claims occur.
The per-accident limit guarantees coverage of up to $1 million for a specific workplace incident of significant magnitude.
Similarly, the per-employee limit provides a maximum of $1 million for each employee, covering their work-related injuries and medical expenses.
However, if damages surpass these limits, the business owner would be responsible for paying the overage out of pocket.
The table below details the average cost of workers' compensation insurance in Tennessee for different company sizes.
How was this cost calculated?
Factors That Impact Workers’ Compensation Costs in Tennessee
Factors such as employee headcount, payroll costs, employee class code and past claims history affect the cost of workers' compensation insurance.
Insurance providers determine premiums based on the state-set fixed rate per $100 of payroll, which varies by industry. As a result, businesses with higher payroll costs generally pay higher premiums than those with lower expenses. In 2022, Tennessee had an average rate of $1.03 per $100 of payroll, making it more affordable than other states.
Number of employees
The number of a business’s employees impacts insurance costs. Larger workforces increase the risk of employee injuries or illnesses, leading to higher workers' compensation insurance premiums.
Employee class code
Employee class codes define the nature of the work of businesses and determine the rate applied per $100 of payroll. High-risk industries like construction generally have higher rates.
Companies with a significant claims history are considered higher risk. In 2021, Tennessee had 53,400 recorded non-fatal workplace illnesses and injuries in private-industry businesses, per the U.S. Bureau of Labor Statistics (BLS).
Do You Need Workers’ Compensation Insurance in Tennessee?
Tennessee businesses with five or more employees must have workers' compensation insurance. However, construction and coal mining businesses are required to get workers’ compensation insurance if they have at least one employee.
Businesses should consider getting workers' compensation insurance, even if they meet the criteria for exemptions. This insurance offers financial protection and coverage for workplace injuries, minimizing the risk of substantial expenses and legal ramifications in case of work-related employee injuries.
Failure to provide required workers' compensation insurance or comply with workers' compensation laws in Tennessee can result in the following penalties:
- Failing to pay — or failing to meet a payment deadline — for temporary disability benefits incurs a 25% penalty. This is awarded to the injured employee.
- Non-compliance with an order from a Specialist or Administrator's Designee may result in a maximum
- Insurance companies or self-insured employers that fail to promptly submit claims forms may face penalties.
- Additional penalties may apply.
What Does Workers’ Compensation Insurance Cover in Tennessee?
Workers' compensation insurance is essential for employees who experience work-related injuries or illnesses, even though the employer technically acts as the policyholder. It provides the following benefits:
- Medical Care Coverage: Workers' comp insurance pays for surgeries, hospital fees, medications, rehabilitation and other necessary medical treatments.
- Disability Benefits: In the event of temporary or permanent disability resulting from a work-related incident, workers' compensation dispenses disability benefits, paying for a portion of the employee's lost income during the disability period.
- Lost Wages Compensation: If an employee is incapable of working due to work-related injuries or illnesses, workers' comp insurance compensates them for their lost wages.
- Rehabilitation Services: Workers' compensation may cover vocational rehabilitation programs aimed at helping injured employees regain skills and return to the workforce.
- Death Benefits: If an employee loses their life due to a work-related incident, workers' compensation provides death benefits to their dependents or beneficiaries.
Workers' compensation insurance enables business owners to protect their employees and ensure financial security during litigation.
Workers’ Compensation Insurance Resources for Employees in Tennessee
Employees in Tennessee may access the resources offered by the Tennessee Department of Labor and Workforce Development to initiate workers' compensation insurance claims.
To obtain benefits, employees must complete a form and submit it to the state board and provide copies to their employer and the employer's insurance provider.
In some cases, the employer may help employees navigate the claims process and take care of the form submission.
Frequently Asked Questions About Workers’ Compensation Insurance in Tennessee
MoneyGeek responded to some commonly asked questions about workers’ compensation insurance in Tennessee to help you find the best provider for your needs.
About Melissa Wylie
- biBERK. "About biBERK." Accessed May 30, 2023.
- The Hartford. "About Us." Accessed May 30, 2023.
- Nationwide. "About Us." Accessed May 30, 2023.
- Next. "About Us." Accessed May 30, 2023.
- U.S. Bureau of Labor Statistics. "Injuries, Illnesses and Fatalities: Latest Numbers." Accessed May 30, 2023.
- U.S. Bureau of Labor Statistics. "State Occupational Injuries, Illnesses and Fatalities." Accessed May 30, 2023.
- Tennessee Department of Labor and Workforce Development. "Injuries at Work." Accessed May 30, 2023.