Tennessee Workers' Compensation Cost Calculator
Key facts: workers' comp in Tennessee
- Who must be covered
- Mandatory from 1 employee in construction, 5 employees elsewhereOfficial agency: BWC
- Average rate
- $0.80 per $100 of payrollRank #39 of 51 (#1 = most expensive), below the $1.09 national median
- Rating organization
- NCCINational Council on Compensation Insurance · Private insurers
- Verified from official records
- October 3, 2026Rates: Oregon DCBS study, June 2025
Tennessee requires workers' comp from the first employee in construction, and from five employees in other businesses. Policies are sold through agents and brokers by the more than 300 insurers licensed by the Department of Commerce and Insurance.
Rates in effect March 1, 2023 · Oregon Department of Consumer and Business Services, 2024 study (June 2025) · Nothing you enter leaves your browser
2024 study rate for all industries in Tennessee. Edit it if your policy shows a different rate.
For the class you're pricing. Insurers rate each class code's payroll separately.
Printed on your experience rating worksheet or renewal. New or small employers that don't qualify for experience rating are rated at 1.00.
Estimated premium
$8,000
per year at an EMR of 1.00
At an average mod
$8,000
per year at an EMR of 1.00
Your EMR's impact
$0
no adjustment
Effective cost: $0.80 per $100 of payroll.
At an EMR of 1.00, your claims history neither raises nor lowers this premium.
Every claim from now on counts toward your next three renewals. IncidentLog makes the first step — a complete, same-day incident report — take about 90 seconds from a job-site QR code.
Create a free accountEstimate before schedule credits or debits, premium discounts, expense constants, state assessments and minimum premiums — your insurer's quote will differ.
Who must carry workers' comp in Tennessee?
Mandatory from 1 employee in construction, 5 employees elsewhere
- Construction
- From 1 employee
- Other industries
- From 5 employees
In construction, seasonal and part-time employees, family members of the owner and as-needed workers all count.
Official agency
Tennessee Bureau of Workers' Compensation (BWC)
Market: Private insurers
Tennessee workers' comp rates by business type
Rate per $100 of payroll for common class codes in Tennessee, against the median of the 51 jurisdictions in the study.
| Business type (NCCI code) | Tennessee | U.S. median | Difference |
|---|---|---|---|
| Office and clerical staff (8810) | $0.11 | $0.11 | 0% |
| Retail store (8017) | $0.88 | $1.20 | −27% |
| Restaurant (full service) (9082) | $0.65 | $1.09 | −40% |
| Restaurant (fast food) (9083) | $0.71 | $1.09 | −35% |
| Hotel (all other employees) (9052) | $0.91 | $1.79 | −49% |
| Assisted living / retirement center (care staff) (8824) | $1.15 | $2.03 | −43% |
| Hospital (professional staff) (8833) | $0.65 | $0.82 | −21% |
| Electrical contractor (5190) | $2.00 | $2.37 | −16% |
| Plumbing contractor (5183) | $1.67 | $2.70 | −38% |
| Residential carpentry (up to 3 stories) (5645) | $8.71 | $8.71 | 0% |
| Roofing (5551) | $9.63 | $9.64 | 0% |
| Trucking (7219) | $3.75 | $5.72 | −34% |
Tennessee uses NCCI class codes. Your insurer applies the rate for your own classes, then your EMR.
What a bad EMR costs in Tennessee
Take $500,000 of payroll at Tennessee's $0.80 index rate: $4,000 a year at an average mod of 1.00.
- EMR 0.85
- $3,400/yr
- EMR 1.25
- $5,000/yr
- Difference
- +$1,600/yr
A claim year usually stays in the mod for three renewals, so the gap adds up to about $4,800. The mod is built from claims, and the cheapest claim is the injury caught early.
IncidentLog lets crews report an injury or near miss from a job-site QR code in about 90 seconds, so you hear about it the same shift and see patterns on your OSHA 300 log before they become claims.
Create a free accountTennessee workers' comp FAQ
Is workers' comp insurance mandatory in Tennessee?
It depends on the industry. In Tennessee, construction employers need coverage from 1 employee, other employers from 5 employees. In construction, seasonal and part-time employees, family members of the owner and as-needed workers all count. Source: Tennessee Bureau of Workers' Compensation.
How are workers' comp rates set in Tennessee?
Employers buy coverage from private insurance companies. The Oregon DCBS study lists NCCI (the National Council on Compensation Insurance) as Tennessee's rating organization. Your own premium then depends on your class codes, your payroll and your experience modification rate (EMR).
What is the average workers' comp rate in Tennessee?
The Oregon Department of Consumer and Business Services's 2024 study puts Tennessee's all-industry index rate at $0.80 per $100 of payroll for rates in effect on March 1, 2023, 73% of the study's national median of $1.09. That ranks Tennessee #39 of 51 jurisdictions, where #1 is the most expensive (#34 in the 2022 study). Your own rate depends on your class codes.
Sources
Official texts behind this page (4 quotes)
“Generally speaking, businesses engaged in the construction industry are required to have workers’ compensation coverage for everyone including the business owners. Other businesses need insurance if there are five or more employees.”
Who must carry insurance — Tennessee Bureau of Workers' Compensation (opens in a new tab) · checked October 3, 2026
“All employers in the construction industry (construction service providers or CSPs) with one or more employees are required to obtain workers’ compensation insurance coverage for those employees. This includes any seasonal or part-time employees, family members of the business owner, or employees that work on an “as needed” basis.”
Construction coverage requirements — Tennessee Bureau of Workers' Compensation (opens in a new tab) · checked October 3, 2026
“From an insurance agent or broker who is authorized write a workers’ compensation policies in Tennessee from one of the over 300 insurance companies that the Department of Commerce and Insurance has licensed to sell insurance in this state.”
How to obtain workers' compensation insurance — Tennessee Bureau of Workers' Compensation (opens in a new tab) · checked October 3, 2026
“The Tennessee Bureau of Workers’ Compensation (BWC) administers the Tennessee Workers’ Compensation Law, assisting both employees and employers in minimizing the impact of work-related injuries.”
Injuries at work — Tennessee Bureau of Workers' Compensation (opens in a new tab) · checked October 3, 2026
An estimate for planning, not a quote, legal or insurance advice. IncidentLog is not an insurer or broker. Median rate across all industries: $1.09 per $100.