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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.
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.
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.
Policies include protection for full-time and part-time workers, seasonal and temporary employees.
Workers’ comp exemptions in Tennessee include:
The Tennessee Workers’ Compensation Act may exclude sole proprietors, partners and LLC members from the count of employees when determining coverage.
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.
Tennessee workers’ comp insurance provides two types of benefits for work injuries:
These benefits include:
Benefits received rely on many factors, such as the employee’s:
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.
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.
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.
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.
If an employee is out of work:
Payments must continue until the earlier of the following events:
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.
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.
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.
Non-compliance with workers' compensation laws in Tennessee can result in severe penalties for employers. An employer may face a fine of between $50 and $500 for an initial violation and up to $5,000 for subsequent violations.
In most cases, employees in Tennessee are barred from suing their employers for work-related injuries or illnesses. The workers' compensation system provides an exclusive remedy, meaning that employees typically cannot file a lawsuit against their employers. Instead, they must pursue a workers' compensation claim to receive benefits for their injuries or illnesses.
Generally, independent contractors aren’t covered by workers' compensation insurance in Tennessee.
Most subcontractors and independent contractors are sole proprietors or partners. Sole proprietors and partners may not be covered by their workers' compensation policy; only the employees are covered.
However, it's important to note that the classification of a worker as an independent contractor or an employee can be complex, and misclassification can lead to legal disputes. If you’re unsure about your classification, it's advisable to seek legal guidance.
Ideally, the incident should be reported immediately or within a few days of the occurrence. Prompt reporting helps ensure the necessary steps are taken to initiate the workers' compensation claims process.
Employees can verify online if their employer has coverage through the state’s online search tool.