Collierville is home to many businesses representing a wide range of industries. Whether they work at a large business like Baptist Hospital or a small business like a kiosk at the Avenue at Carriage Crossing, employees sometimes get injured on the job. Workers’ compensation insurance is designed to cover the associated costs.
If you are among the many employers in Collierville, an independent insurance agent can help you find the best and most affordable workers’ compensation policy to cover your business. Contact an insurance agent near you to learn more.
Is Workers’ Compensation Insurance Required in Collierville, TN?
The state of Tennessee mandates that if you have at least five regular employees, you must carry workers' compensation insurance. In the case of businesses operating in the construction and coal mining industries, this insurance is required regardless of the number of employees you have.
You are not required to purchase coverage for sole proprietors, partners, or LLC members, though you can if you want to. Regardless of whether or not you are insuring them, these corporate officers must be included in your total employee count.
Workers’ compensation insurance can be purchased through a commercial provider or your company may opt to self-insure, though you will need to apply for approval and demonstrate that you have the financial means to do so.
Knowingly and willingly failing to carry workers’ compensation is illegal and can result in your being penalized. Currently in this state, fines are as follows:
- A 25% penalty for missed or late payments.
- A $5,000 fine for failure to comply in a timely manner with an administrator’s designee’s order when reviewing a claim.
- A penalty of up to $10,000 for being cited for not having coverage. The penalty amount is based on your estimated yearly premium.
- A fine of $1,000 a day for not acquiring coverage within 10 days of being cited and fined for not carrying workers’ compensation insurance.
The state is very strict when it comes to enforcing its workers’ compensation laws, so it is best to stay in compliance.
How Much Does Workers’ Compensation Insurance Cost in Collierville?
Workers’ compensation costs are calculated based on how likely your employees are to be hurt on the job, based on the types of jobs they do. Rates can vary significantly from one industry to another.
Every occupation is assigned a classification code, and coverage rates for each of these class codes are regulated by the Workers’ Compensation Division of Tennessee and the Department of Labor and Workforce Development.
Insurance companies use these designated base rates when calculating costs, but are permitted to be competitive by offering discounts and credits. That’s why it pays to compare rates before making a purchase.
Let’s take a look at the average rates paid per every $100,000 in employee payroll for three of the top industries in Collierville, TN:
- Health care: $1,420 a year
- Truck transportation: $4,600 a year
- Educational services: $280 a year
The more likely a worker is to be injured on the job, the higher the rates for workers’ compensation insurance will be. That's why it costs so much more to cover a long-haul truck driver than a professor at the University of Memphis, Collier Center.
Of course, these rates are merely averages for businesses within large industry segments. The only way to know how much a workers’ compensation policy will cost for your business is to request customized quotes. A local independent insurance agent can help.
What Does Collierville Workers’ Compensation Insurance Cover?
Workers’ compensation insurance is designed to cover the various costs associated with on-the-job injuries and occupational illnesses. You can expect your policy to cover the following:
- Medical treatment: Workers’ compensation will cover all costs for necessary medical treatment related to occupational illnesses and injuries. This includes any associated follow-up care, medications, physical therapy, and other treatment. Employees should pay nothing out of pocket.
- Travel reimbursement: Workers’ comp insurance will reimburse employees for miles driven to and from medical appointments if they must travel more than 15 miles one way. Reimbursement rates are updated annually by the MS Workers’ Compensation Commission. As of January 1, 2020, the rate was 57.5 cents per mile.
- Temporary total disability (TTD): If an employee needs to take more than seven consecutive days off of work to recuperate from a work-related injury, they will be able to collect a weekly benefit of two-thirds of their average weekly pay until they can return to work.
- Temporary partial disability (TPD): If an employee is approved to return to work with light duty or reduced hours, TPD coverage can help bridge the gap between their previous earnings and what they are making while working under restrictions by covering two-thirds of the difference.
- Permanent partial disability (PPD): If a worker is permanently disabled but is still able to work in some capacity, they can receive compensation of up to two-thirds of their average weekly pay for a number of weeks that is determined according to the nature of their injury.
- Permanent total disability (PTD): If a work-related injury is so severe that the injured worker is unable to do any job, workers’ compensation insurance can provide them with a weekly benefit of two-thirds of their average wage until they hit retirement age.
- Survivor benefits: If a work-related injury or illness leads to a fatality, workers’ compensation can ease the financial burden on surviving family members by covering burial expenses up to $10,000. Benefits will be paid to surviving family as follows:
- If the deceased employee left behind a spouse but no children, their spouse can receive payments equal to one-half of the employee’s average weekly wage.
- If the deceased employee left behind a spouse and dependent children, the family can receive two-thirds of the employee’s average weekly wage.
- If the deceased employee left behind no spouse or children, a lump sum of $20,000 will go to the employee’s estate.
You can learn more about workers’ compensation insurance by speaking with an independent insurance agent in Collierville.
What If Your Workers’ Compensation Claim Is Denied?
Insurance companies sometimes deny workers' compensation claims. This might happen for a number of reasons, such as if your insurer suspects that the injury did not actually occur while the employee was working, that the injury was intentionally self-inflicted, or that the injured employee was under the influence of drugs or alcohol at the time of the accident.
If you believe that your workers’ compensation claim was unjustly denied, you can file an appeal with the Workers’ Compensation Appeals Board. This board is made up of three judges who are appointed by the governor. This board will hear your case and issue a decision.
Find the Best Workers’ Compensation Insurance in Collierville, TN
If you're looking for the ideal workers’ compensation policy to cover your Collierville business, an independent insurance agent can help. These agents can help you obtain and review customized quotes from a selection of insurance providers that specialize in covering businesses in your industry. That way, you can be sure you're getting your coverage at a competitive price.
Discover how easy it can be to find an ideal workers’ compensation policy for your business. Contact an insurance agent in Collierville, TN to set up an obligation-free consultation.
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