Best Workers' Compensation Insurance in Tennessee (2023)

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.

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.

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.

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.

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.

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.

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.

Factors such as employee headcount, payroll costs, employee class code and past claims history affect the cost of workers' compensation insurance.

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.

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.

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.

MoneyGeek responded to some commonly asked questions about workers’ compensation insurance in Tennessee to help you find the best provider for your needs.