Memphis Workers' Compensation Insurance

Your Complete Guide to Memphis, TN Workers' Comp Insurance

Find the right workers' compensation insurance policy for you.


As an employer in Memphis, TN, you are expected to provide your employees with a safe and healthy environment in which to work. Unfortunately, accidents sometimes happen, even when reasonable precautions are taken. If your workers are injured or become ill on the job, your business is responsible for covering any necessary medical treatment and financial losses they may suffer as a result. 

Workers’ compensation insurance is designed to provide this coverage. Independent Insurance Agents can help you find the best and most affordable workers’ compensation policy to cover your specific business. You can learn more about this coverage and start comparing customized quotes by contacting an independent insurance agent in or near Memphis.

Is Workers’ Compensation Insurance Required in Memphis, TN?

Many, but not all, employers in Memphis, TN are required to have workers’ compensation insurance. The state of Tennessee requires an employer to carry this coverage if one or more of the following criteria are met:

  • Employer operates in the coal mining industry
  • Employer operates in the construction industry
  • Employer has at leave five employees (family members and part-time workers are included in the employee count)

When purchasing a policy, it is not necessary to cover sole proprietors, LLC members, partners, or corporate officers, but you can if you want to.

How Much Does Workers' Comp Insurance Cost in Memphis, TN?

Rates for workers’ compensation insurance are calculated according to the kinds of jobs your workers do and your company’s overall payroll. The more likely a worker is to suffer a significant injury while doing a particular kind of job, the more it will cost to cover them. Every kind of job has a classification code, and the Tennessee Department of Labor and Workforce Development assigns rates for each. 

Insurance companies are required to use these base rates when calculating costs for coverage, but they can offer discounts and incentives. It is therefore in your best interest to compare quotes from a few different insurance companies before you buy a policy. The following are the average rates paid per every $100,000 in employee payroll for the three top industries in Memphis, TN:

  • Transportation & Warehousing: $6,115
  • Manufacturing: $4,510 a year
  • Retail Trade: $1,230 a year

The transportation and warehousing industry is among the most dangerous to work in, and the rates for coverage reflect that. Of course, these rates can vary depending on more specific information about what your company does. For help getting actual, customized quotes for your particular business, contact a local independent insurance agent.

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What Does Memphis Workers’ Comp Insurance Cover?

Workers’ compensation insurance is designed to cover on-the-job injuries and illnesses. As the policyholder, you can choose which doctors your employees are treated by in order to reduce the chance of fraud. Exceptions are made for severe injuries that require immediate attention. In that case, your policy will cover treatment in the nearest emergency room. You can expect your Memphis workers’ compensation insurance policy to cover the following:

  • Medical treatment: Workers’ compensation is designed to cover all costs associated with necessary medical treatment and follow-up care related to illnesses and injuries sustained on the job so that the employee has no out-of-pocket costs.
  • Short-term disability: Employees who need more than seven consecutive days to recuperate from a work-related injury or illness can collect a weekly benefit of 2/3 of their average weekly pay until they are approved by a physician to return to work.
  • Permanent disability: Employees who can never return to work because of severe injuries or debilitating work-related illnesses can receive benefits of up to 450 weeks’ worth of compensation in an amount that is based on both their average wages before the accident and the severity of their injury.
  • Travel reimbursement: If an employee must travel more than 15 miles one way to receive necessary medical care for a work-related injury or illness, workers’ comp will reimburse their mileage and travel expenses.
  • Death benefits: If an employee succumbs to a work-related injury or illness, workers’ comp will cover burial expenses up to $10,000 and will provide compensation to the employee’s spouse and dependent children. If the deceased employee had no spouse or dependents, $20,000 will be awarded to their estate.

You can get more information about each of these benefits by talking with an independent insurance agent in Memphis.

What If Your Workers’ Compensation Claim Is Denied?

Workers' compensation will not cover:

  • Injuries that did not actually occur on the job
  • Injuries that were intentionally self-inflicted
  • Injuries that occurred due to employee refusal to use provided safety devices or equipment
  • Injuries that occurred while under the influence of drugs or alcohol
  • Injuries that occurred during a voluntary company-sponsored recreational activity

If you believe that your workers’ compensation claim was unjustly denied, or if your employee is unhappy with a proposed settlement amount, the decision can be appealed by filing a petition with the Tennessee Bureau of Workers’ Compensation.

Find the Best Workers’ Compensation Insurance in Memphis, TN

An independent insurance agent can provide you with customized quotes from competing insurance companies that specialize in covering businesses like yours. That way, you can be sure you are getting great coverage at a competitive price. Discover how easy it can be to find the right workers’ compensation policy for your business. 

Find an insurance agent in or near Memphis to get started.

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