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Tennessee Workers’ Comp

Tennessee Workers’ Comp Insurance

CompShield is licensed to write workers’ comp directly in Tennessee, License #3001764214, and we’re an independent agency comparing real carriers, not a single-carrier storefront. Tennessee’s logistics and distribution sector, anchored by FedEx’s Memphis hub, alongside real automotive manufacturing and healthcare bases, mean the businesses we work with here carry genuine, specific risk.

Tennessee sets a five-employee threshold for most industries, but construction and coal mining are different, coverage is required starting at just one employee, including the business owners themselves.

Licensed in Tennessee, License #3001764214

Coverage Requirements

Construction and Coal Mining Have a Stricter Rule

Tennessee requires coverage for non-construction employers with five or more employees, sole proprietors, LLC members, and partners aren’t counted toward that total, but full-time corporate officers are. Construction and coal mining are held to a stricter standard, coverage is required starting at just one employee, including the business owners themselves, not just hired staff.

Source: Tennessee Bureau of Workers’ Compensation, Who Must Carry Insurance

Penalties

Up to Three Times Your Avoided Premium

Tennessee’s civil penalty for operating uninsured runs 1.5 times the employer’s avoided annual premium, rising to three times for a repeat violation within five years. The state’s Uninsured Employers Fund covers injured workers at uninsured businesses, capped at $40,000 total between temporary disability and medical costs, then pursues the employer for reimbursement.

Tennessee’s uninsured-employer penalty runs up to three times the avoided premium for a repeat violation.

Source: Tennessee Bureau of Workers’ Compensation, Compliance

Open Market

Tennessee Is Not a Monopolistic State

Tennessee allows private carriers to write workers’ comp, unlike the four monopolistic states, Ohio, North Dakota, Washington, and Wyoming, where coverage has to come through a state fund. Tennessee uses NCCI for its rating framework, which is exactly where an independent agent comparing real carrier options adds value.

Pricing

How Much Does Workers’ Comp Cost in Tennessee?

Tennessee’s logistics, automotive, and healthcare-heavy economy, anchored by FedEx, Nissan, and HCA, means rates for those specific classifications reflect real, documented risk differences. The formula behind your real number is the same regardless of trade:

Payroll Ă· 100 Ă— Class Code Rate Ă— Experience Mod = Premium
  • Payroll. Your total insurable payroll, starting at employee one for construction and coal mining, or employee five for most other industries.
  • Class code rate. Logistics, automotive manufacturing, and construction classifications reflect Tennessee’s real economic mix and are rated accordingly.
  • Experience mod. Compares your claims history to similar Tennessee businesses in your class code.

We’ll run the real number against your actual payroll and classification, not a generic Tennessee average.

Common Questions

Tennessee Workers’ Comp, Answered

Yes, for non-construction employers with five or more employees, but construction and coal mining businesses need coverage starting at just one employee, including the owners.

Five for most industries, but construction and coal mining employers need coverage starting at their very first employee, including business owners themselves.

A civil penalty of 1.5 times your avoided annual premium applies, rising to three times for a repeat violation within five years.

Tennessee law specifically lowers the threshold to one employee for construction and coal mining, reflecting the real, elevated risk profile of those trades, and even requires coverage for the business owners themselves.

No exclusive state fund. Tennessee is a competitive market, using NCCI as its rating framework.

Not automatically. Tennessee uses a seven-factor control test weighted toward who actually controls the conduct of the work, a 1099 alone doesn’t exempt a worker from being counted as an employee.

Logistics and automotive manufacturing classifications, given Tennessee’s real concentration in both, tend to run higher rates. Your specific rate depends on your actual class code and claims history.

Tennessee is part of the multi-state Electronic Workers’ Compensation Coverage Verification system, letting anyone check whether a specific employer currently carries active coverage.

Yes. New businesses are typically quoted on estimated payroll for the first policy term, then trued up at audit once real payroll figures are in.

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