In most cases, businesses with five or more employees must carry workers’ compensation insurance, whether or not they are full-time, part-time, seasonal, or relations. Businesses that operate within Tennessee must suit the state’s workers’ compensation regulations. The average workers’ compensation insurance rates have been steadily declining over the past five years, ever since the state passed reforming legislation in 2013.
Small Business Work Comp Requirements in Tennessee
Tennessee small businesses are required to hold workers' compensation insurance if they need five or more employees. Coal mining, construction, and trades businesses must have insurance if they need one or more employees, and owners must even have coverage on themselves unless they request an exemption.
Employee Limits
If considered employees, family members, part-time employees, and corporate officers count toward the employee limits.
Corporate Officers
Corporate officers in non-construction businesses may exclude themselves, but they still count toward the five-employee limit.
Subcontractors and Independent Contractors
Many subcontractors and independent contractors are sole proprietors or partners. Unless you’re an employee, you won’t be covered by their insurance policy and may need to provide proof of work comp.
How to Buy Small Business Workers’ Compensation Insurance
Tennessee features a private market, which suggests employers can buy a workers' compensation policy from any insurance carrier or agency that's licensed to write down therein state.
To get coverage, contact a licensed insurer and request a quote. Employers got to provide basic business details, including locations, EIN number, sort of work the business does, the entire payroll that needs coverage and any prior history of labor comp coverage or claims.
The state doesn't offer a state insurance fund, but employers struggling to seek out coverage can contact NCCI, which administers Tennessee’s Workers Compensation Insurance Plan.
Coverage and Rates in Tennessee
The state underwent reforms to its workers’ compensation system about five years ago, which has led to a decrease in rates.
The governor signed legislation in 2013 overhauling portions of the system, and in 2015, Tennessee decided to eliminate the Tennessee Workers Compensation Insurance Plan (TWCIP) and replace it with NCCI’s Workers Compensation Insurance Plan.
NCCI, or National Council on Compensation Insurance, is employed by many nations to gather workplace injury data, recommend insurance rates, or administer a workers’ comp insurance plan.
Tennessee chose NCCI to administer workers compensation residual market services, which offers coverage to businesses that can’t find coverage through private insurers. The state also uses NCCI to recommend rates. If accepted, insurers must use these rates as a baseline for premiums. the character of the business, total payroll being covered, claims history and other individual factors all influence the entire cost. Learn more about what proportion of workers’ compensation policies cost.
Most recently, NCCI filed for a 19.1% decrease, the most important since reforms were passed in 2013. this is able to be the eighth consecutive decrease in rates.
Tennessee Work Comp Resources
- Workers’ compensation regulation: Tennessee Bureau of Workers' Compensation
- Tennessee rating bureau: NCCI (National Council on Compensation Insurance)
- Workers' comp residual market: NCCI (National Council on Compensation Insurance)
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