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.

Key Takeaways

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In Tennessee, the top-ranked workers' compensation insurance provider is Thimble. According to MoneyGeek's comprehensive study, Thimble excels due to its affordability, customer satisfaction, and financial stability. Here are the details regarding Thimble's standing:

1. Ranking: Thimble holds the highest score among workers' compensation providers in Tennessee.
2. Average Monthly Premium: Approximately $96 for businesses with 20 employees and an annual payroll of $1.25 million, placing it as the most affordable option in its category.
3. Financial Stability: Thimble is noted for robust financial health, ensuring reliable coverage and claim payout capability.
4. Customer Service: High customer satisfaction ratings highlight Thimble’s efficiency in handling claims and its support services, contributing to its outstanding reputation among Tennessee businesses.

While Thimble is the leading option for midsize businesses, companies with different sizes or risk categories may find varying costs. Financial stability and customer satisfaction are crucial factors, affirming Thimble as a reliable choice in Tennessee's competitive market for workers' compensation insurance.

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In Tennessee, Thimble is the top choice for budget-conscious businesses seeking workers' compensation insurance, offering the cheapest rates with an average monthly premium of approximately $96. This places Thimble ahead of other providers regarding affordability, making it an excellent option for businesses looking to minimize expenses.

Reasons Why Thimble is a Good Option for Cost-Conscious Businesses:

1. Affordability: With the lowest average monthly premium of $96 for companies with 20 employees and an annual payroll cost of $1.25 million, Thimble provides cost-effective coverage that can significantly reduce operational expenses.

2. Comprehensive Coverage: Despite its affordability, Thimble offers robust coverage, adhering to standard policy limits, including a $1 million total policy limit, a $1 million limit per accident, and a $1 million limit per employee.

3. High MoneyGeek Score: Thimble scores 96 out of 100, reflecting its strong performance in affordability, customer satisfaction, and financial stability, which are crucial for businesses seeking reliable and trustworthy insurance providers.

4. Business Size Versatility: Thimble caters to different business sizes effectively. While it is particularly favorable for mid-sized businesses, its adaptability and competitive pricing extend its appeal to smaller enterprises as well.

Thimble's ability to blend affordability with comprehensive coverage makes it a sound choice for Tennessee businesses aiming to protect themselves from financial and legal risks without stretching their budgets.

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Workers' compensation insurance is a crucial aspect of protecting businesses from the financial and legal risks associated with workplace injuries or illnesses. In Tennessee, as mandated by state law, business owners are required to provide this coverage, which ensures employees receive medical care, disability benefits, lost wages compensation, rehabilitation services, and death benefits in the event of work-related incidents. 

Key Factors Influencing Workers' Compensation Insurance Premiums in Tennessee:

1. Number of Employees:
- Larger organizations typically present higher risk levels, thereby increasing insurance premiums. However, the number of employees is generally considered less impactful than payroll size.

2. Payroll Size:
- Payroll is one of the most significant factors in determining the cost of workers' compensation insurance. A larger payroll correlates with higher premiums because it indicates a greater risk and potentially higher claims payouts.

3. Employee Class Code:
- Different occupations carry varying risks, which are reflected in class codes. Higher-risk jobs, such as construction work, typically result in higher premiums compared to lower-risk office work.

4. Claims History:
- Businesses with a history of frequent or severe claims may face higher premiums as they are perceived as riskier by insurers.

5. Coverage Limits:
- The policy limits, such as the total policy limit, per accident limit, and per employee limit, can impact costs. Tennessee's standard sample policy includes $1 million limits, but exceeding these could result in higher premiums.

Variation of Rates:

- Rates can vary considerably based on company size. For instance, MoneyGeek’s study highlights Thimble as the leading provider for midsize businesses (e.g., 20 employees and an annual payroll of $1.25 million), offering policies around $96 per month.
- On the other hand, biBERK emerges as the preferred provider for smaller businesses, costing approximately $57 per month for companies with five employees and an annual payroll of $312,500.
- Larger businesses experiencing higher payrolls, such as those with annual payrolls of $6.25 million, can expect monthly premiums of around $311 with Thimble.

Regulatory Nuances:

- Tennessee businesses with five or more employees are mandated to have workers’ compensation insurance. However, specific industries like construction and coal mining require coverage if they employ even a single worker.
- Despite the exemptions criteria, businesses should still consider workers' compensation for financial safeguarding against workplace injuries and potential litigations.

Understanding these factors enables business owners to better navigate workers' compensation insurance options and select the most economically viable provider, such as Thimble or biBERK, based on their specific business size and risk profile.

Why Trust MoneyGeek? We collected 677 workers’ compensation insurance quotes and analyzed cost information alongside customer satisfaction and financial stability reports to determine the best workers’ compensation insurance companies for small businesses in Tennessee.

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Coverage costs and company information for workers' compensation insurance providers in Tennessee were last updated in 2023.

677Quotes Analyzed
 
6Companies Compared
 
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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.

How was this MoneyGeek score calculated?


1
ThimbleBest Overall in Tennessee
Score:94

5/5

Affordability

2/5

Customer Satisfaction

3/5

Financial Stability

5/5

Online Quote Process

Geek Quick Take
Geek Quick Take
  • Provides the cheapest rates at $96 per month
  • Offers a quick and efficient online quote process
  • Holds an A+ rating from AM Best
More About Thimble

Thimble is Tennessee's best workers' compensation insurance provider, per MoneyGeek's analysis. Established in 2016, Thimble specializes in insurance policies for small businesses.

This provider stands out by offering the most affordable premiums in Tennessee at around $96 per month. Alongside affordability, Thimble prioritizes a streamlined quoting process, enabling convenient comparisons with other insurance companies.

However, Thimble has a lackluster reputation for customer service, with a higher-than-average complaints ratio from NAIC. Nonetheless, it maintains an A+ rating for financial stability from AM Best, which attests to its strong financial position and ability to fulfill its obligations.

2
The Hartford
Score:92

2.1/5

Affordability

5/5

Customer Satisfaction

4/5

Financial Stability

4/5

Online Quote Process

Geek Quick Take
Geek Quick Take
  • Has the best reputation for customer service
  • Provides swift online estimates
  • Features an average monthly cost of $119
More About The Hartford

The Hartford is a financial services company headquartered in Connecticut. It stands out among workers’ compensation providers in Tennessee for its exceptional customer service, receiving the lowest NAIC complaints ratio in the state.

Additionally, The Hartford holds an impressive A+ rating for financial stability from AM Best. This score demonstrates a sound financial standing and an ability to meet obligations.

The average monthly cost of a policy from The Hartford is $119, which is moderately priced compared to others. The Hartford's quoting process is also quick, taking approximately 1 minute and 20 seconds.

3
biBERK
Score:89
4
Next
Score:88
5
Nationwide
Score:87

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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MoneyGeek Top Pick

Thimble

MoneyGeek recommends Thimble as the leading option for affordable workers' compensation insurance in Tennessee.

On average, Thimble’s policies cost $96 per month for businesses with 20 employees and $1.25 million in annual payroll costs. Aside from being the state’s cheapest option, Thimble offers an efficient quoting system online. These factors make it an ideal choice for cost-conscious business owners.

However, it’s important to note that Thimble has a higher complaints ratio according to the NAIC, indicating potential issues with its customer service.

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.

Thimble$96$1,036
The Hartford$119$1,428
Next$134$1,608
biBERK$135$1,428
Nationwide$136$1,628

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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MoneyGeek Top Pick

biBERK

MoneyGeek has chosen biBERK as the top workers' compensation insurance company for micro businesses in Tennessee. For businesses with five employees and an annual payroll of $312,500, a biBERK policy costs around $57 per month.

biBERK offers affordable rates and exceptional customer service, allowing small business owners to receive excellent support without straining their budgets.

Additionally, biBERK provides a quick quote process, making comparing rates with other insurance providers easy.

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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MoneyGeek Top Pick

Thimble

MoneyGeek's research identifies Thimble as the preferred option for workers' compensation insurance among midsize businesses in Tennessee. Thimble is more affordable than many competitors and has a streamlined quote process, making it an excellent option for cost-conscious midsize businesses.

Thimble also holds an impressive A+ rating for financial stability from AM Best, demonstrating strong financial standing and reliability.

However, Thimble has a higher-than-average complaint ratio reported by NAIC, suggesting potential challenges for some policyholders when dealing with claims.

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.

How was this cost calculated?

5$61$691
20$124$1,426
100$444$5,131

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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    Payroll costs

    Insurance providers determine premiums based on the state-set fixed rate per $100 of payroll, which varies by industry. As a result, businesses with higher payroll costs generally pay higher premiums than those with lower expenses. In 2022, Tennessee had an average rate of $1.03 per $100 of payroll, making it more affordable than other states.

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    Number of employees

    The number of a business’s employees impacts insurance costs. Larger workforces increase the risk of employee injuries or illnesses, leading to higher workers' compensation insurance premiums.

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    Employee class code

    Employee class codes define the nature of the work of businesses and determine the rate applied per $100 of payroll. High-risk industries like construction generally have higher rates.

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    Previous claims

    Companies with a significant claims history are considered higher risk. In 2021, Tennessee had 53,400 recorded non-fatal workplace illnesses and injuries in private-industry businesses, per the U.S. Bureau of Labor Statistics (BLS).

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.

Which company has the best workers’ compensation insurance in Tennessee?

Which company has the cheapest workers’ compensation insurance in Tennessee?

Does Tennessee require businesses to have workers’ compensation insurance?

How much does workers’ compensation insurance cost in Tennessee?

About Melissa Wylie

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Melissa Wylie is the Content and SEO Manager at MoneyGeek, with nearly a decade of editorial experience and six years of work in financial content focused on small businesses. She previously held SEO positions at Bankrate and LendingTree, with bylines on ValuePenguin and MagnifyMoney.

Wylie has a journalism degree from the University of North Texas. Her strong foundation in journalism helps her craft content that simplifies complex financial topics to help everyone feel confident when making decisions with their money.

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