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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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WORKERS’ COMP PENALTIES IN TENNESSEE

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.

Thanks to its affordable rates and financial stability, Thimble is our choice for Tennessee's best workers' compensation insurance provider. However, the best provider for you may vary based on your industry, employee count and other unique factors.

Based on our research, Thimble offers Tennessee's most affordable workers' compensation insurance at $96 per month. Still, the cheapest provider for you depends on factors like your business location, payroll size and employee count.

Tennessee law requires businesses with five or more employees to have workers' compensation insurance. Businesses in the construction and coal mining industry are required to get workers’ compensation insurance if they have at least one employee.

For businesses in Tennessee with 20 employees, the average monthly cost of workers' compensation insurance is $124, which is below the national average of $168 per month.

About Melissa Wylie


Melissa Wylie headshot

Melissa Wylie is a Content and SEO Manager at MoneyGeek. Melissa has worked in the financial content space since 2018 and has spent much of that time focused on all things small business.

Prior to joining MoneyGeek, Melissa held SEO positions at Bankrate and LendingTree. Melissa’s work has also appeared on LendingTree-owned websites ValuePenguin and MagnifyMoney.

Melissa began her career at American City Business Journals in 2015 as a reporter for the company’s women-focused publication Bizwomen. Melissa has a Bachelor of Arts in Journalism from the University of North Texas. Melissa relies on her foundation in journalism to craft content that simplifies complex financial topics to help everyone feel confident when making decisions with their money.

Melissa's other work can be read on LendingTree and Bizwomen.


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