Workers compensation insurance pays medical bills, rehabilitation costs, and a portion of lost wages when an employee is injured or becomes ill because of their job. In Tennessee, most businesses with five or more employees are required by law to carry workers compensation coverage. Certain industries — including construction — must carry coverage with even just one employee on the payroll.
Beyond the legal requirement, workers comp protects your business from costly lawsuits. An employee who accepts workers comp benefits generally cannot sue the employer for the same injury, which limits your liability exposure significantly.
What Workers Compensation Covers
- Medical expenses — Doctor visits, emergency care, surgery, prescriptions, and physical therapy related to a work injury or occupational illness.
- Temporary disability benefits — A portion of the employee’s regular wages (typically two-thirds) while they are unable to work during recovery.
- Permanent disability benefits — Compensation for lasting impairment if the employee cannot fully return to their prior capacity.
- Vocational rehabilitation — Job retraining and placement assistance for employees who cannot return to their previous role.
- Death benefits — Payments to a deceased employee’s dependents in the event of a fatal workplace accident.
- Employer’s liability — Defends and pays claims brought against the employer that fall outside the standard workers comp system.
Tennessee-Specific Requirements
Tennessee workers compensation law is administered by the Tennessee Bureau of Workers’ Compensation. Penalties for non-compliance can include fines and stop-work orders. The rules vary by industry and employee count, so it is important to get the classification right — both to stay legal and to avoid paying more premium than necessary.
Controlling Your Workers Comp Costs
Premium is calculated based on your industry classification codes and your total payroll. Businesses with strong safety programs and low claims histories may qualify for experience modification factor (EMR) credits that reduce premiums over time. We review your class codes carefully because misclassification is one of the most common — and costly — workers comp mistakes small businesses make.
Vallie Insurance works with multiple carriers to find competitive workers comp rates for employers in Greene County. Fill out the quote form or call us to discuss your workforce and get a quote.