Workers' comp rates in Tennessee depend on your industry and team size. Find answers to common coverage questions below.
Best Workers' Comp Insurance in Tennessee
With rates starting at $5 monthly, ERGO NEXT, Simply Business and The Hartford offer the cheapest and best workers' comp insurance in Tennessee.
Get matched to top Tennessee workers’ comp insurance providers and find your ideal coverage.
Select your industry
Select state
Updated: January 23, 2026
Advertising & Editorial Disclosure
Best Tennessee Workers' Comp Insurance: Fast Answers
What are the best and cheapest workers' comp insurance providers in Tennessee?
ERGO NEXT offers the top cheap workers' compensation insurance in Tennessee. The following are the state's cheapest and best workers' comp insurance providers and their average monthly rates:
- ERGO NEXT: $67
- The Hartford: $68
- Simply Business: $69
- Coverdash: $71
- biBerk: $73
Is workers' comp insurance required in Tennessee?
Tennessee mandates workers' comp insurance for employers with five or more employees, whether full-time or part-time. Sole proprietors, partners and businesses with fewer than five workers are exempt. Construction and coal mining companies must carry coverage regardless of employee count. Non-compliance results in fines and potential criminal charges.
How much does workers' comp insurance cost in Tennessee?
Workers' compensation insurance costs in Tennessee run about $36 per employee monthly for small businesses. Your actual premium depends on your industry and payroll size. Low-risk businesses like speech therapy pay around $3 monthly per employee, while high-risk industries such as roofing face costs near $407 per employee each month.
How do you get workers' comp insurance in Tennessee?
You can get workers' comp coverage in Tennessee by:
- Purchasing from licensed private insurance companies operating in the state
- Joining a group self-insurance fund with other qualified employers in your industry
- Becoming individually self-insured if your business meets Tennessee's strict financial requirements
Many business owners compare quotes online or through brokers to get the best rate and compliance support.
What does Tennessee workers' comp insurance cover?
Workers’ compensation in Tennessee covers:
• Medical expenses for workplace injuries and occupational illnesses
• Wage replacement benefits during recovery periods
• Permanent disability compensation for lasting impairments
• Death benefits for families of workers killed in job-related accidents
Best Workers' Comp Insurance Companies in Tennessee
ERGO NEXT leads Tennessee's workers' comp market with top-rated customer support and flexible coverage that fits businesses of all sizes. The Hartford and Simply Business rank second and third, providing financial protection for Tennessee small business owners.
| ERGO NEXT | 4.60 | $67 | 1 | 2 |
| The Hartford | 4.52 | $68 | 2 | 3 |
| Simply Business | 4.52 | $69 | 5 | 1 |
| Coverdash | 4.45 | $71 | 6 | 2 |
| biBERK | 4.43 | $73 | 2 | 5 |
| Nationwide | 4.43 | $79 | 2 | 4 |
| Progressive Commercial | 4.39 | $69 | 7 | 5 |
| Hiscox | 4.37 | $70 | 4 | 6 |
| Thimble | 4.35 | $68 | 8 | 5 |
| Chubb | 4.27 | $83 | 3 | 4 |
How Did We Determine These Rates and Rankings?
These rates are estimates based on MoneyGeek's analysis of small businesses with two employees across 79 major industries. Actual rates vary based on your business location, industry risk factors, claims history, coverage limits and individual insurer underwriting criteria. Contact insurers directly for personalized quotes.
Get Matched to Top Workers' Comp Insurers in Tennessee
Select your industry and state to get a customized Tennessee workers' comp quote from your top provider match.
Industry
State
LEARN MORE ABOUT THE BEST BUSINESS INSURANCE IN TENNESSEE
Explore the best business insurance providers in Tennessee through our guides:
Best Tennessee Workers’ Comp Insurance Company Reviews
Review our detailed evaluations of the leading workers' compensation insurers in Tennessee:
ERGO NEXT
Best Workers' Comp Insurance in Tennessee
MoneyGeek Rating
4.6/ 5
4.4/5Affordability
4.7/5Customer Experience
4.8/5Coverage Points
Average Monthly Workers' Comp Premium
$67We analyzed thousands of workers' compensation quotes from insurers operating in Tennessee across 79 industriesWorkers' Comp Digital Experience Score
4.8/5 (1st)Rating based on MoneyGeek's customer satisfaction surveyWorkers' Comp Customer Likelihood to Be Recommended to Others Score
4.8/5 (1st)Likelihood customers would recommend The Hartford
The Hartford
Best Tennessee Workers' Comp Insurance: Runner Up
MoneyGeek Rating
4.5/ 5
4.3/5Affordability
4.6/5Customer Experience
4.7/5Coverage Points
Average Monthly Workers' Comp Premium
$68Typical monthly cost for The Hartford workers' compensation coverageWorkers' Comp Claims Process Score
4.5/5 (1st)Rating based on MoneyGeek's customer satisfaction surveyWorkers' Comp Customer Likelihood to Be Recommended to Others Score
4.5/5 (2nd)Percentage of current customers who would recommend The Hartford
Cheapest Workers' Comp Insurance Companies in Tennessee
ERGO NEXT leads Tennessee with workers' comp insurance at just $67 monthly ($808 annually), putting $4 back in your pocket each month compared to the average rate of $72. That's 6% less than what most businesses pay for coverage.
The Hartford comes in second at $68 per month, while Thimble rounds out the top three affordable options at $68 monthly as well. Both providers offer solid alternatives if you're shopping around for competitive rates.
The table below shows costs from all companies we analyzed.
| ERGO NEXT | $67 | $808 |
| The Hartford | $68 | $813 |
| Thimble | $68 | $822 |
| Simply Business | $69 | $833 |
| Progressive Commercial | $69 | $833 |
| Hiscox | $70 | $838 |
| Coverdash | $71 | $851 |
| biBERK | $73 | $875 |
| Nationwide | $79 | $945 |
| Chubb | $83 | $991 |
How Did We Determine These Rates?
These rates represent small businesses with two employees across 79 major industries and focus solely on workers' comp policies. Your actual premium depends on your business location, industry, employee count, claims history, coverage limits and other factors insurers consider.
Cheapest Workers' Comp in Tennessee by Industry
ERGO NEXT delivers the most affordable workers' comp rates for automotive businesses at $104 monthly or $1,243 annually. ERGO NEXT leads pricing in 34 industries, excelling in accountants, advertising agencies and auto repair sectors. The Hartford ranks second for affordability, offering competitive rates across 15 industries including window cleaning services.
| Accountants | Thimble | $18 | $220 |
| Ad Agency | Thimble | $14 | $171 |
| Automotive | ERGO NEXT | $104 | $1,243 |
| Auto Repair | ERGO NEXT | $138 | $1,653 |
| Bakery | ERGO NEXT | $49 | $588 |
| Barber | The Hartford | $13 | $152 |
| Beauty Salon | ERGO NEXT | $13 | $159 |
| Bounce House | The Hartford | $37 | $442 |
| Candle | The Hartford | $36 | $429 |
| Cannabis | Nationwide | $90 | $1,079 |
| Catering | Progressive Commercial | $66 | $790 |
| Cleaning | The Hartford | $44 | $532 |
| Coffee Shop | Progressive Commercial | $41 | $497 |
| Computer Programming | The Hartford | $25 | $304 |
| Computer Repair | ERGO NEXT | $21 | $257 |
| Construction | ERGO NEXT | $159 | $1,911 |
| Consulting | ERGO NEXT | $28 | $333 |
| Contractor | ERGO NEXT | $146 | $1,753 |
| Courier | The Hartford | $201 | $2,413 |
| Daycare | Simply Business | $12 | $146 |
| Dental | ERGO NEXT | $10 | $117 |
| DJ | ERGO NEXT | $12 | $149 |
| Dog Grooming | The Hartford | $60 | $714 |
| Drone | Progressive Commercial | $24 | $286 |
| Ecommerce | ERGO NEXT | $20 | $237 |
| Electrical | ERGO NEXT | $52 | $620 |
| Engineering | ERGO NEXT | $35 | $416 |
| Excavation | Progressive Commercial | $96 | $1,158 |
| Florist | Thimble | $56 | $671 |
| Food | Hiscox | $39 | $464 |
| Food Truck | Simply Business | $42 | $505 |
| Funeral Home | Progressive Commercial | $25 | $296 |
| Gardening | Progressive Commercial | $41 | $495 |
| Handyman | ERGO NEXT | $85 | $1,017 |
| Home-based | ERGO NEXT | $9 | $110 |
| Home-based | The Hartford | $9 | $110 |
| Hospitality | Thimble | $61 | $738 |
| HVAC | ERGO NEXT | $58 | $692 |
| Janitorial | Progressive Commercial | $44 | $532 |
| Jewelry | Thimble | $27 | $328 |
| Junk Removal | The Hartford | $123 | $1,479 |
| Lawn/Landscaping | Thimble | $34 | $410 |
| Lawyers | Thimble | $48 | $570 |
| Manufacturing | ERGO NEXT | $53 | $641 |
| Marine | Thimble | $137 | $1,650 |
| Massage | ERGO NEXT | $13 | $157 |
| Mortgage Broker | Thimble | $13 | $152 |
| Moving | Simply Business | $239 | $2,868 |
| Nonprofit | ERGO NEXT | $29 | $343 |
| Painting | Simply Business | $128 | $1,538 |
| Party Rental | ERGO NEXT | $33 | $396 |
| Personal Training | ERGO NEXT | $23 | $278 |
| Pest Control | ERGO NEXT | $64 | $770 |
| Pet | Thimble | $28 | $335 |
| Pharmacy | ERGO NEXT | $6 | $68 |
| Photography | ERGO NEXT | $15 | $181 |
| Physical Therapy | Thimble | $6 | $73 |
| Plumbing | The Hartford | $59 | $704 |
| Pressure Washing | Nationwide | $91 | $1,090 |
| Real Estate | ERGO NEXT | $27 | $323 |
| Restaurant | ERGO NEXT | $56 | $672 |
| Retail | Simply Business | $31 | $377 |
| Roofing | Nationwide | $886 | $10,629 |
| Security | ERGO NEXT | $46 | $557 |
| Security | The Hartford | $46 | $557 |
| Snack Bars | ERGO NEXT | $40 | $479 |
| Software | Progressive Commercial | $24 | $290 |
| Spa/Wellness | Progressive Commercial | $16 | $190 |
| Speech Therapist | ERGO NEXT | $5 | $64 |
| Startup | Progressive Commercial | $12 | $144 |
| Tech/IT | Simply Business | $25 | $302 |
| Tech/IT | ERGO NEXT | $25 | $302 |
| Tech/IT | The Hartford | $25 | $302 |
| Transportation | Thimble | $210 | $2,524 |
| Travel | The Hartford | $6 | $77 |
| Tree Service | ERGO NEXT | $198 | $2,371 |
| Trucking | The Hartford | $237 | $2,849 |
| Tutoring | Simply Business | $9 | $108 |
| Tutoring | ERGO NEXT | $9 | $108 |
| Veterinary | ERGO NEXT | $18 | $210 |
| Wedding Planning | Progressive Commercial | $25 | $303 |
| Welding | ERGO NEXT | $106 | $1,277 |
| Wholesale | Progressive Commercial | $37 | $440 |
| Window Cleaning | The Hartford | $190 | $2,284 |
How Much Is Workers' Comp Insurance in Tennessee?
Tennessee's workers' comp insurance cost averages $72 monthly ($861 annually), slightly below the national average of $74. Costs vary across industries, from speech therapists at $70 annually ($35 per employee) to roofers at $9,763 annually ($4,882 per employee).
| Accountants | $20 | $236 |
| Ad Agency | $16 | $187 |
| Auto Repair | $149 | $1,783 |
| Automotive | $114 | $1,367 |
| Bakery | $52 | $625 |
| Barber | $14 | $164 |
| Beauty Salon | $14 | $171 |
| Bounce House | $40 | $476 |
| Candle | $39 | $471 |
| Cannabis | $82 | $983 |
| Catering | $72 | $859 |
| Cleaning | $47 | $567 |
| Coffee Shop | $46 | $549 |
| Computer Programming | $27 | $328 |
| Computer Repair | $23 | $282 |
| Construction | $176 | $2,114 |
| Consulting | $30 | $358 |
| Contractor | $160 | $1,924 |
| Courier | $219 | $2,630 |
| DJ | $14 | $163 |
| Daycare | $13 | $157 |
| Dental | $11 | $129 |
| Dog Grooming | $64 | $762 |
| Drone | $26 | $312 |
| Ecommerce | $21 | $254 |
| Electrical | $56 | $670 |
| Engineering | $37 | $445 |
| Excavation | $104 | $1,247 |
| Florist | $60 | $715 |
| Food | $42 | $498 |
| Food Truck | $45 | $536 |
| Funeral Home | $26 | $315 |
| Gardening | $45 | $544 |
| HVAC | $62 | $740 |
| Handyman | $92 | $1,100 |
| Home-based | $10 | $117 |
| Hospitality | $68 | $816 |
| Janitorial | $47 | $568 |
| Jewelry | $29 | $353 |
| Junk Removal | $137 | $1,646 |
| Lawn/Landscaping | $37 | $442 |
| Lawyers | $51 | $613 |
| Manufacturing | $58 | $693 |
| Marine | $148 | $1,776 |
| Massage | $14 | $170 |
| Mortgage Broker | $14 | $164 |
| Moving | $255 | $3,057 |
| Nonprofit | $31 | $373 |
| Painting | $138 | $1,654 |
| Party Rental | $36 | $426 |
| Personal Training | $25 | $297 |
| Pest Control | $68 | $820 |
| Pet | $30 | $360 |
| Pharmacy | $6 | $74 |
| Photography | $17 | $199 |
| Physical Therapy | $7 | $80 |
| Plumbing | $62 | $749 |
| Pressure Washing | $82 | $987 |
| Real Estate | $29 | $349 |
| Restaurant | $62 | $740 |
| Retail | $34 | $411 |
| Roofing | $814 | $9,763 |
| Security | $51 | $607 |
| Snack Bars | $42 | $509 |
| Software | $26 | $309 |
| Spa/Wellness | $17 | $203 |
| Speech Therapist | $6 | $70 |
| Startup | $13 | $154 |
| Tech/IT | $27 | $320 |
| Transportation | $225 | $2,703 |
| Travel | $7 | $82 |
| Tree Service | $216 | $2,593 |
| Trucking | $262 | $3,149 |
| Tutoring | $10 | $117 |
| Veterinary | $19 | $229 |
| Wedding Planning | $27 | $330 |
| Welding | $114 | $1,371 |
| Wholesale | $39 | $470 |
| Window Cleaning | $203 | $2,435 |
Tennessee Workers' Comp Insurance Cost Factors
These cost factors affect workers' compensation insurance rates in Tennessee:
Consecutive Years of Rate Decreases
Tennessee workers' comp rates dropped 3.6% effective March 1, 2025, marking the 12th straight year of decreases. Since 2014 reforms began, rates have fallen more than 70%. Your insurance company uses NCCI's loss cost recommendations approved by Tennessee's Department of Commerce and Insurance, so your renewal automatically benefits from these state-mandated reductions each March, even if nothing about your business changes.
The 2014 Workers' Compensation Reform Act
Tennessee's 2013 reform legislation took effect July 1, 2014, creating an administrative Court of Workers' Compensation Claims and requiring physicians to prove employment caused more than 50% of injuries. The reforms cut fraudulent claims, sped up processing through administrative courts, and introduced body-as-a-whole ratings that typically produce lower impairment scores. Smaller benefit payouts translate directly to lower premiums, with insurers passing claim savings to Tennessee employers.
Decreasing Claim Frequency
Tennessee workplaces report fewer lost-time injuries each year, driving down claim frequency statewide. NCCI analyzes this data annually and recommends rate cuts when claims trend downward. You benefit from aggregate improvements even without filing claims yourself, since rates reflect collective data from all Tennessee employers in your industry. Fewer lost-time claims eliminate costly disability payments that insurers previously built into premiums.
Allowable Debit/Credit
Workers' comp remains profitable for insurers in Tennessee, attracting multiple carriers competing for your business. Tennessee allows insurers to apply credits and debits up to 25% from base rates. When carriers compete, they undercut each other using this flexibility. For a business with $500,000 payroll, that 25% spread can mean $2,500 in annual savings between the highest and lowest quotes for identical coverage.
Tennessee's REWARD Program
Tennessee's Bureau of Workers' Compensation created the REWARD program to help you reduce workdays lost to injuries and speed up employee returns to work. Claims average $41,000 according to NCCI, with indirect costs often exceeding direct expenses. Getting injured workers back faster reduces claim severity and improves your Experience Modification Rate over three years. An EMR drop from 1.15 to 0.90 cuts your premiums 25% through effective transitional work strategies.
NCCI Loss Cost Recommendations
Tennessee contracts with NCCI to collect data from every workers' comp claim filed statewide and analyze trends across 800+ industry classifications. Your premiums reflect current risk levels rather than outdated data because NCCI recommends annual rate adjustments based on mathematical analysis of actual Tennessee claims. The state requires insurers to file rates annually using NCCI's baseline, preventing overcharging and creating standardized EMR calculations that treat every Tennessee employer fairly.
Assigned Risk Market Improvements
Tennessee's assigned risk pool recently dropped rates 9.7% for businesses that standard carriers won't insure due to poor claims history or high-risk operations. Lower assigned risk rates create competitive pressure throughout the market and signal that even high-risk Tennessee businesses operate more safely than before. This makes transitioning back to voluntary carriers easier for businesses improving their safety records rather than trapping them indefinitely in expensive pools.
How Much Workers' Comp Insurance Do I Need in Tennessee?
Tennessee law requires most employers to carry workers' compensation coverage once you hire five employees, including part-time workers and family members. Construction and coal mining businesses need coverage from day one with your first hire.
Your required workers' compensation coverage pays unlimited medical expenses, two-thirds of wages during recovery (capped at $1,360.70 weekly for 2024-2025) and permanent disability benefits up to $556,650. Skip coverage and you face $5,000 penalties plus lawsuits from injured workers.
Tennessee Workers' Comp Insurance Exemptions
Most Tennessee employers need workers' comp insurance, but these business categories qualify for exemptions:
- Businesses with fewer than five employees: Employers outside construction and coal mining with four or fewer workers don't need coverage. You can purchase it voluntarily.
- Construction service providers on the exemption registry: Sole proprietors, partners, LLC members and corporate officers in construction can register through Tennessee's Secretary of State to exempt themselves while covering employees.
- Corporate officers (nonconstruction): Officers file Form I-6 to exempt themselves from coverage. You still count toward the employee total unless unpaid.
- Partners and LLC members (nonconstruction): Business owners are automatically excluded from workers' comp policies. You can elect coverage by filing Form I-4.
- State and local government employers: Government entities don't need workers' comp coverage but can provide it for employees.
- Farm labor employers: Businesses employing farm laborers don't need workers' comp coverage under Tennessee law.
- Domestic help employers: Employers hiring domestic workers in private homes don't need workers' comp coverage.
- Independent contractors: Independent contractors aren't considered employees under Tennessee workers' comp law based on seven factors evaluating the work relationship.
- Casual employees: Workers performing casual employment as defined in Tennessee Code Annotated § 50-6-106 aren't covered by mandatory requirements.
- Self-employed individuals with no employees: Self-employed people operating without employees don't need workers' comp. Clients may request coverage proof.
FEDERAL WORKERS' COMP PROGRAMS OVERRIDE STATE REQUIREMENTS
Tennessee workers' comp requirements don't apply to federal employees. Federal civilian workers in Tennessee receive coverage through the Federal Employees' Compensation Act instead of state insurance. Railroad employees file claims under the Federal Employers' Liability Act, while maritime workers at Tennessee's Mississippi River ports use the Longshore and Harbor Workers' Compensation Act. These federal programs completely replace Tennessee's state workers' comp system for covered employees.
How to Get the Best Workers' Comp Insurance in Tennessee
Explore how to get workers' comp insurance with the right provider at the best price.
- 1Determine if you need workers' comp coverage in Tennessee
Most Tennessee employers with five or more employees need coverage. Construction and coal mining businesses need it with just one employee.
Sole proprietors, partners and LLC members don't count toward the five-employee threshold, but corporate officers do unless they file for exemption. Tennessee considers some 1099 contractors to be employees under state law. Construction businesses face stricter rules and must register exemptions with the Tennessee Secretary of State for $50 to $100.
- 2Gather your business information
You'll need employee count, annual payroll and NCCI classification codes for accurate quotes. Tennessee uses about 700 industry codes that determine your rates.
Get these numbers right. Wrong payroll figures or misclassified employees trigger audit charges or coverage gaps when filing claims. Construction owners who include themselves in coverage must use minimum payroll of $28,600 and maximum of $85,700 for rating calculations.
- 3Request workers' comp quotes from multiple carriers
Compare quotes from at least three insurers to find the best value for your business insurance costs. Tennessee has no state fund, so coverage comes through private insurers or the assigned risk market managed by NCCI.
Tennessee rates declined 3.6% in 2025 for the 12th consecutive year and run about 19% lower than the national average. If private insurers reject your application, contact NCCI at 800-622-4123 for assigned risk coverage.
- 4Research providers with industry experience
Focus on insurers who understand your specific business risks beyond offering cheap business insurance rates. Tennessee has hundreds of carriers actively writing workers' comp policies with targeted programs for specific industries.
Construction companies should find carriers experienced with Tennessee's strict contractor requirements. Manufacturers and retailers benefit from insurers who understand Tennessee's class code system and help classify employees correctly.
- 5Evaluate your top provider options
Research each insurer's track record to find the best insurance for your business:
- Check claim processing efficiency, customer service ratings and complaint history with the Tennessee Department of Commerce and Insurance.
- Confirm the insurer offers strong administrative support for Tennessee's strict claim reporting requirements.
- Verify the insurer provides Form C-42 guidance, which documents the employee's choice of authorized treating physician from at least three nearby doctors.
- Look for carriers offering return-to-work programs, safety consultations and flexible underwriting.
- 6Review and purchase your workers' compensation policy
Read policy terms carefully, focusing on coverage limits, exclusions and renewal conditions. Consider pay-as-you-go workers' comp structures if your business has seasonal employees or fluctuating payroll. These plans let you pay premiums based on actual payroll each pay period, reducing upfront costs and eliminating surprise audit bills. Many Tennessee insurers offer flexible payment options.
- 7Reassess before annual renewal
Before renewal, evaluate how your business changed. Review employee count, analyze claims filed and check how your experience modification rate calculated by NCCI affects pricing.
Hiring employees, expanding services or relocating can affect your premium. Tennessee approved a 3.6% rate decrease for 2025, but your rates depend on claims history and risk profile. Update your insurer about changes.
Best Tennessee Workers' Compensation Insurance: Bottom Line
ERGO NEXT, The Hartford and Simply Business rank as Tennessee's top workers' comp insurers. Research each company's service quality, maximize discounts and select coverage that fits your budget.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in 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!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
sources
- National Council on Compensation Insurance. "ABCs of Experience Rating." Accessed February 7, 2026.
- National Council on Compensation Insurance. "Frequency and Severity Results by State Based on Data Valued as of December 31, 2023." Accessed February 7, 2026.
- National Federation of Independent Business. "TN Workers' Comp Rates to Decline for 11th Year in a Row." Accessed February 7, 2026.
- Tennessee Bureau of Workers' Compensation. "New Program Aims to Help Employees, Reduce Workers' Compensation Costs." Accessed February 7, 2026.
- Tennessee Bureau of Workers' Compensation. "REWARD Toolkit." Accessed February 7, 2026.
- Tennessee Department of Commerce and Insurance. "Tennessee Workers' Comp Rates Decline for 12th Consecutive Year in 2025." Accessed February 7, 2026.
- Tennessee Department of Labor and Workforce Development. "How Rates for Insurance Premiums are Set." Accessed February 7, 2026.
- Tennessee Department of Labor and Workforce Development. "Who Must Carry Insurance." Accessed February 7, 2026.