In this state, workers’ compensation premiums are calculated according to how many employees a business has, the types of jobs these workers do, the company’s overall annual payroll, and the employer’s history of accidents and workers’ compensation claims.
In general, if you have workers who do jobs that involve higher risks of suffering serious injuries, you can expect to pay more for workers’ compensation insurance for them in Tennessee.
Every year, the Workers’ Compensation Division of the Tennessee Department of Labor and Workforce Development publishes assigned rates for every job classification. Insurance companies must adhere to these rates when determining costs, though they are permitted to offer policy discounts when appropriate.
Every occupation is assigned a specific classification code. You would need to find the classification codes for all the jobs your employees do.
The Tennessee Workers’ Compensation Division assigns base rates for each of these class codes according to the overall injury risks associated with these jobs.
The base rate is used as part of a formula that determines an employer’s annual workers’ compensation premium.
Example Based on $100,000 in Annual Payroll
- Classification Code 8829: Nursing Home Employees
- Base rate: $2.37
- Premium calculation: Base rate X (Payroll/100)
- $100,000/100 = $1,000 X $2.98 = $2,370.
- $2,370 = Estimated annual workers' compensation premium for Tennessee nursing home workers.
Established employers can get lower rates if they have a solid safety rating. This is known as an experience modifier-based discount.