Tennessee workers' compensation insurance: Your ultimate guide
Everything to know about workers’ compensation for
Tennessee
businesses
What does workers’ compensation cover?
A standard workers’ comp policy covers four primary areas: medical expenses, lost wages, employer liability and ongoing rehabilitation. EverPeak policies ensure your crew gets the care they need to return to work safely while protecting your business from the costs of workplace accidents.
Medical care
Coverage for the necessary treatment resulting from a work-related injury or illness.
Lost wages
Partial pay for employees unable to work while recovering from an injury.
Legal protection
Financial support for your business if an employee files a lawsuit related to an accident.
Ongoing care
Rehabilitation and training to support employees re-enter the workforce, and ongoing benefits for permanent injuries.
Death benefits
Financial support for the families.
What are
Tennessee
's workers' comp laws?
Tennessee, known as the Volunteer State, is steeped in rich history and diverse landscapes. From the vibrant cities of Nashville and Memphis to the picturesque beauty of the Great Smoky Mountains, Tennessee offers a unique blend of culture, natural wonders and a thriving business community.
Whether you're an entrepreneur in the heart of Music City or a small business owner nestled in the scenic countryside, safeguarding your business, your employees and yourself with workers' compensation insurance is crucial.
What is workers' compensation?
Workers' compensation is a state-mandated insurance program for employers with five or more employees. Employers in the construction or mining industry, however, must provide coverage even if there is only one employee. Workers' comp is designed to provide financial protection for employees who suffer work-related injuries or illnesses.
Without workers’ compensation, the cost of an injured employee’s medical treatment could become the responsibility of your business.
Tennessee workers' compensation rules and regulations
The Tennessee Bureau of Workers’ Compensation (BWC) administers the state’s workers’ compensation law, assisting employees and employers in minimizing the impact of work-related injuries. The law requires employers with five or more employees to secure workers’ compensation insurance coverage.
Family members, part-time employees, and corporate officers are included when determining the number of employees, if they meet the definition of employee.
Businesses in coal mining and construction services need workers’ compensation insurance in the state if they have one or more employees.
Workers’ comp coverage can be obtained through a partner like EverPeak Insurance or by qualifying as a self-insured employer.
Tennessee’s Assigned Risk Plan — administered by the National Council on Compensation Insurance (NCCI) — can also provide workers’ comp coverage.
Employees can verify online if their employer has coverage through the state’s online search tool.
Who is covered and exempt from
Tennessee
workers' comp?
Who is covered?
Policies include protection for full-time and part-time workers, seasonal and temporary employees.
Workers’ comp exemptions in Tennessee include:
- State and local governments
- Farm laborers
- Domestic employees
The Tennessee Workers’ Compensation Act may exclude sole proprietors, partners and LLC members from the count of employees when determining coverage.
Covered injuries and illnesses
Workers' compensation covers a range of work-related injuries and illnesses, including physical injuries resulting from accidents, illnesses caused by exposure to harmful chemicals and allergens, and repetitive strain injuries at work that develop over time.
Benefits provided
Tennessee workers’ comp insurance provides two types of benefits for work injuries:
- Medical benefits
- Partial wage replacement
These benefits include:
- Medical treatment for work-related accidents, injuries and/or illnesses
- Mileage reimbursement for travel over 15 miles to medical appointments
- Temporary disability benefits
- Permanent disability benefits
- Death benefits to the surviving family
Benefits received rely on many factors, such as the employee’s:
- Average weekly wage before the injury
- Injury severity
- Length of recovery and ability to continue working
Tennessee workers’ compensation rates
Tennessee Workers' Compensation Law limits the maximum and minimum amount of weekly compensation paid to injured employees. The average of the employee's gross wages will determine the weekly rate. The benefit amount is calculated using two-thirds of the employee's average weekly wage over the 52 weeks before the injury.
Find more information on annual Tennessee workers’ compensation rates here.
How much does workers’ comp cost in
Tennessee
?
How do you file a workers’ compensation claim in
Tennessee
?
Filing a workers' compensation claim
In the event of a work-related injury or illness, employees must promptly notify their employer and seek medical attention.
In Tennessee, employer notification is required by law within 15 calendar days of the date of injury.
Filing a claim is the employer's responsibility in the case of a workplace-related injury or illness. Employers must submit all known or reported injuries or illnesses to their workers' compensation insurance carrier within one working day of knowledge of the injury or illness.
Choosing a healthcare provider
If the workers’ compensation insurance carrier accepts the claim, benefits will be issued promptly to ensure timely care.
Employers in Tennessee should provide at least three physicians located in the employee’s community. The employer’s workers’ compensation program can develop the panel of providers. Employees must seek medical treatment from these designated providers to ensure coverage. Once they select a physician, they become the authorized treating physician.
Payment of medical bills
The workers’ compensation insurance company’s adjuster will review all medical bills and reports. If an adjuster accepts the claim, benefits are paid. If an adjuster denies a claim, the adjuster must provide documentation that meets the statutory criteria for denial. Documented results of an investigation are also required to support the denial of a claim.
Medical treatment recommended by the authorized treating physician that gets denied by the insurance company's utilization review agent can be submitted to the Bureau's Utilization Review Program for additional review and consideration.
Compensation for missed work
If an employee is out of work:
- Less than seven days: They are not eligible for temporary total disability payments.
- More than seven but less than 14 days: They are eligible for lost time benefits beginning on the eighth day.
- More than 14 days: They are eligible for benefits retroactive to the first day they stopped work.
Payments must continue until the earlier of the following events:
- An injured employee accepts or rejects a job offered by the employer at a wage equal to or greater than the employee's pre-injury wage
- Mediation is held and a report is filed by the Bureau
Resolving disputes
If there’s a dispute regarding a workers' compensation claim, the administrative Court of Workers’ Compensation Claims within the Tennessee Bureau of Workers’ Compensation is responsible for adjudicating the claim. This involves mediation, hearings and potential appeals.
How to get workers' compensation
Insurance requirements for employers
Employers in Tennessee with five or more employees must carry workers' compensation insurance or qualify for self-insurance, depending on their size and industry. Compliance with these requirements is essential to protect both the employer and employees.
Choosing the right insurance provider
When selecting a workers' compensation insurance provider, consider factors such as the provider's experience in the industry, financial stability, coverage options, claims process, customer service, and cost.
We recommend requesting multiple quotes and comparing the offerings before making a decision.
Covering your business and employees with a trusted insurance partner — like EverPeak — brings peace of mind so you can focus on your bottom line.
FAQs
Workers’ compensation is a form of insurance that benefits employers and employees in the case of a work-related injury or illness.
Reach out to our customer service team directly at 833.929.0523, or fill out our contact form, and we’ll point you in the right direction.
Workers' compensation can cover staff injuries that happen on the job, including incidents involving patients, depending on the circumstances and your policy's terms.
Many general contractors, property owners or permitting offices require proof of insurance — often a certificate of insurance — before work begins. Confirm with the requesting party what's required for your specific job.
In many cases, yes — general contractors often require subcontractors to carry their own coverage before starting work. Requirements vary by project and state, so confirm with your contractor and an agent.
Enforcing safety protocols, providing proper employee training, maintaining a clean and hazard-free work environment, and regularly reviewing safety practices can significantly reduce workplace injuries.
Your premium is primarily determined by your industry payroll classifications, geographic location and total annual payroll. Your business’s safety history can also play a major role in determining your final rate. Three key factors influence your base insurance rate:
- Industry classification codes: Higher-hazard trades naturally carry higher baseline rates.
- Geographic location: Rates and statutory benefit structures fluctuate heavily by state lines.
- Historical safety record: Maintaining an accident-free workplace lowers your Experience Modification Rate (E-mod), resulting in built-in premium discounts.
Work-related injuries or illnesses should be reported immediately or within a few days of occurrence. State statutes typically set strict deadlines—for example, Georgia law (O.C.G.A. § 34-9-80) requires notice within 30 days of the accident. Prompt reporting ensures timely medical care and protects your right to benefits.
Why choose EverPeak for workers’ comp coverage?
EverPeak protects the hardest-working businesses in
Tennessee
with simple, reliable workers’ comp starting as low as $18 a month. Backed by over a century of specialized experience, customers get multi-state coverage, fast and easy claims support, and a vast network of brokers.
Tennessee
workers’ comp resources
A Beginner's Guide to Tennessee Workers' Compensation
Program Rules
Tennessee Department of Labor and Workforce Development
Tennessee Bureau of Workers’ Compensation
Customer Care
Learn more about workers’ compensation in your state
Learn more about specific workers' comp insurance requirements and local compliance guidelines in your state.