How Much is Workers’ Comp Insurance in Tennessee? 2025 Rates

Workers’ Compensation Rates in Tennessee by Industry

Here are some example rates provided by a partner carrier: 

Please note that these rates are approximate and can vary depending on factors such as the specific occupation and the carrier you choose. For more accurate quotes tailored to your business, it's important to speak with an experienced insurance agent.

Recent Changes in Workers’ Comp Premium in Tennessee

Recently, there have been favorable changes for employers. Workers' compensation rates have been declining for the 11th consecutive year, making insurance premiums more affordable for most Tennessee businesses.

This downward trend is a result of fewer on-the-job injury claims and measures to improve workplace safety, which allows insurance providers to reduce their rates. The assigned risk market experienced a 9.7% rate decrease, making insurance even more budget-friendly for businesses.

How to calculate your Tennessee Workers' Comp Premium

The simple formula to estimate your premium

Calculating your workers' comp premium in Tennessee can be a straightforward process. To estimate your premium, you'll need to follow a simple formula:

(Payroll / $100) x Rate = Estimated Annual Workers' Comp Premium

1. ‍Payroll refers to the estimated annual payroll for your employees.‍
2. Classification Rate is determined by the National Council on Compensation Insurance (NCCI), which assigns specific rates to each type of job and industry.

Remember that this formula is just a rough estimate, and you will need to consult with a Tennessee workers' comp insurance provider to get an accurate quote.

Sample calculation to get a better understanding

Let's say you own a small retail store in Tennessee with an annual payroll of $500,000. The classification rate of our partner carrier for retail stores in Tennessee is $.96 per $100 of payroll for retail employees. The estimated annual workers' comp premium would be calculated as follows:

($500,000 / $100) x $.96 = $4,800

Using this formula, your estimated annual workers' comp premium for your retail store in Tennessee would be around $4,800. Keep in mind that this is just an example and may not accurately reflect your specific business situation.

Get a Kickstand Quote for a closer estimate

Now that you have a basic understanding of how workers' comp premiums are calculated in Tennessee, feel free to use our instant quoter to get a more accurate estimate for your business. Don't forget to browse our resources for additional guidance on workers' compensation insurance and protecting your business.