Workers’ Compensation Insurance
Workers’ Compensation Insurance – Protect Your Employees (Tennessee)
If you run a business in Tennessee, taking care of your team means more than just writing paychecks. Workers’ compensation insurance ensures your employees receive medical care and lost wage benefits if they’re hurt on the job. It also protects your business from costly legal battles. In Tennessee, work comp is not only required for most employers—it’s a smart way to protect your people and your future.
Whether you’re operating a retail shop in downtown Morristown, managing a roofing crew in Jefferson City, or growing a construction firm across East Tennessee, Queener Insurance can help you meet your TN workers comp requirements and keep your business compliant.
What Tennessee Business Owners Need to Know
Tennessee law requires most employers with five or more employees to carry workers’ compensation insurance. If your business operates in construction, you’re required to carry it if you have even one employee. That includes part-time workers and family members on payroll.
There are some exceptions—sole proprietors and partners, for instance, are generally excluded unless they opt in. Up to five corporate officers may file for exemption as well. The rules can be nuanced depending on your structure and industry, and that’s where we come in. At Queener Insurance, we’ll walk you through the Tennessee Department of Labor guidelines and make sure you’re set up correctly.
Coverage That Protects Both Sides
Workers’ comp insurance provides benefits when an employee is injured or becomes ill as a result of their job. Coverage typically includes:
- Medical expenses and hospital bills
- Rehabilitation and therapy costs
- Partial lost wages while the employee is unable to work
- Death benefits to dependents in the event of a fatality
- Employers liability coverage (protection from lawsuits outside the comp system)
Say an employee in your Morristown office slips on a wet floor and breaks their arm—this policy covers their treatment and helps replace income while they recover, all without draining your business resources.
Why It Pays to Be Covered—Even If You’re Not Required
Even if your business is just under the threshold, workers' compensation can still be a good idea. Accidents happen, and covering medical bills out-of-pocket can be devastating. It also reassures current and future employees that they’ll be taken care of, and many companies won’t subcontract to uninsured businesses. Having a policy in place can help you win work and keep your reputation strong.
Helping You Manage Cost Without Cutting Corners
Your premium is based on several factors: payroll size, employee job classification, and claims history. At Queener Insurance, we help Tennessee business owners reduce costs by:
- Making sure each employee is properly classified (no overpaying)
- Advising on workplace safety practices to prevent injuries
- Shopping multiple insurance carriers for the best rate
- Assisting with the annual audit to avoid billing surprises
We make the process clear and handle the paperwork, so you can focus on running your business.
Ready to Quote Your Workers’ Comp Policy?
To get started, we’ll need a few details—like your total payroll, what each employee does, and any history of past claims. We’ll take it from there. Whether you need to file with the state, provide proof to a general contractor, or want to add workers’ comp to an existing commercial package, Queener Insurance is here to make it easy.
My business has only 4 employees in Tennessee. Am I legally required to have workers’ comp?
Under Tennessee law, if you have 5 or more full or part-time employees, you must carry workers’ comp (and construction businesses must carry if they have 1 or more). With 4, you’re technically below the threshold. However, remember that workplace injuries can still happen and medical costs can be high – so even if not required, it might be wise. Also, if you plan on hiring more or if you contract for companies that require it regardless of size, you might need it. We can discuss your specific situation and the pros/cons of voluntarily obtaining coverage.
Can business owners be excluded from workers’ comp coverage?
Yes. In Tennessee, sole proprietors and partners are automatically excluded but can opt in if they want coverage for themselves. Corporate officers and LLC members are automatically included in the count, but they can file for exemption (up to 5 officers can be exempt, for example). We can help fill out the exemption paperwork if you as an owner/officer want to be excluded (commonly owners choose not to cover themselves to save cost, as health insurance might handle their medical). We’ll ensure the policy is set up correctly based on who you want covered.
What if an employee is hurt and we don’t have workers’ comp?
If you were supposed to have it (legally) and didn’t, you could face penalties from the state. More importantly, your business would be liable for all medical bills and lost wages, and you could be sued in civil court by the injured employee (since without workers’ comp, they have that right). This scenario can be financially devastating. If it wasn’t legally required, the employee could still sue the business for negligence. Either way, not having coverage puts you at huge risk. It’s safer to have the insurance in place to handle such incidents.
How is my workers’ comp premium determined?
Premium is primarily based on your payroll and the type of work (risk level) your employees perform. Jobs are categorized into classes, each with a rate per $100 of payroll (set by the state’s rating bureau or insurers). For example, an accountant’s payroll is rated much lower than a roofing worker’s payroll because the risk of injury is very different. At the end of the policy year, there’s an audit where you report actual payrolls – if you paid more than estimated, you might owe extra premium, if less, you could get a refund. We’ll help you navigate classifications and keep the estimates accurate to avoid surprises.
Does workers’ comp cover all injuries or are there exceptions?
It covers most work-related injuries or illnesses, regardless of fault. However, there are exceptions. For instance, injuries that happen when an employee is intoxicated or using drugs on the job usually aren’t covered. Self-inflicted injuries or those from horseplay might be denied. Also, injuries that happen off the job (even if to an employee) aren’t covered – it has to be arising out of employment. We encourage safe workplace practices and have resources to help reduce accidents. But when genuine accidents happen, workers’ comp is there to cover it.
