If you own or manage a business in Tennessee, it’s essential to understand the state’s workers compensation laws. All employers in Tennessee must carry workers comp insurance to protect their employees in case of a workplace injury.
When an employee gets hurt on the job, Tennessee workmans comp insurance provides them with medical care and lost wage replacement. For employers, it protects against costly lawsuits.
Who Needs Workmans Comp Insurance in Tennessee?
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With few exceptions, all public and private employers with 5 or more full or part-time employees are legally required to carry Tennessee workmans comp insurance. This includes construction companies, manufacturers, retailers, restaurants, healthcare providers, nonprofits and more.
Sole proprietors and partnerships in high-risk industries like construction may also need coverage. Independent contractors and temporary workers may also be eligible for benefits depending on work circumstances.
Tennessee Workmans Comp Insurance: How it Works
Tennessee first passed a workers comp law in 1919. This system created a no-fault arrangement where injured employees receive guaranteed benefits, while employers are shielded from legal action. Over the years, the law has gone through various reforms to refine the system. The most recent update came in 2013 with the Workers’ Compensation Reform Act.
What the 2013 Reform Act Changed
The 2013 Reform Act’s main purpose was to streamline the handling of injured workers’ claims in Tennessee. It removed jurisdiction over claims from state courts. Now, cases go to a new Court of Workers’ Compensation Claims within the Tennessee Department of Labor and Workforce Development.
According to supporters, this reform helps both injured employees and employers. It allows workers to receive benefits faster through a process that’s simpler to navigate. Meanwhile, it provides employers with a more consistent system to operate their businesses.
Key Workers Comp Requirements in Tennessee
While the 2013 Act altered the claims process, the main requirements for Tennessee workers comp insurance remain unchanged:
- All employers must carry coverage. This includes both large corporations and small businesses. There are no exemptions for small employers.
- Employers must report all workplace injuries to their insurer in a timely manner.
- Tennessee workers comp insurance must pay for medical treatment related to the injury. This includes doctor visits, physical therapy, medications and more.
- If the injury causes the employee to miss more than 14 days of work, the insurance must pay a portion of their lost wages. The payments cover around 2/3 of the employee’s average weekly wage.
- Employers must accommodate injured workers returning to duty if the doctor releases them for light or modified duty. This helps transition employees back to full productivity.
Securing Coverage in Tennessee
When it comes to securing workers comp insurance, Tennessee employers have a few options. They can purchase a standard policy from a specialist workmans comp insurance carrier like EMPLOYERS, join a group self-insurance fund with other Tennessee businesses, or become an authorized self-insurer by meeting stringent financial requirements.
It’s wise to choose a specialized carrier like EMPLOYERS familiar with Tennessee’s unique laws and regulations when opting for a standard policy. In addition to compliance expertise, look for a provider offering excellent customer service, risk management guidance, and claims assistance. As a leading Tennessee workers comp provider, EMPLOYERS checks all those boxes.
Tennessee Workmans Comp Insurance: Closing Thoughts
Tennessee workmans compensation insurance safeguards both employers and employees when workplace injuries occur. Following state laws and securing appropriate coverage allows businesses to operate safely, effectively and legally.
