Workers’ Compensation Insurance in Tennessee—Protect Your Team and Stay Compliant

Required Coverage That Protects Employees and Employers

Workers’ compensation insurance provides benefits to employees who are injured or become ill due to their job—and protects businesses from costly lawsuits. In Tennessee, workers’ comp is often required by law, making it essential for compliance as well as responsible business ownership.



The Bill Yon Agency helps Tennessee employers understand their obligations, secure the right policy, and manage workers’ comp with confidence.

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A Safety Net for Everyone

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Medical Expenses

Covers doctor visits, hospital care, prescriptions, and rehabilitation for work-related injuries or illnesses.

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Wage Replacement

Pays a portion of lost wages if an employee cannot work while recovering.

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Employer Protection

Limits employee lawsuits related to workplace injuries and helps protect your business financially.

Understanding State Requirements

  • Most businesses with 5 or more employees are required to carry workers’ compensation insurance

  • Construction businesses generally need coverage with 1 or more employees

  • Sole proprietors and partners are typically not required but may opt in

How Workers’ Comp Is Priced

Workers’ compensation premiums are typically based on your total payroll, employee job classifications and associated risk levels, and your claims history, with rates calculated per $100 of payroll. Proper classification is critical, as misclassified employees can significantly increase costs, so we help ensure your workforce is classified correctly and shop multiple carriers to find competitive options—even for new or higher-risk businesses.

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Workers’ Comp FAQs

  • How does workers’ compensation work for a small business?

    It provides medical and wage benefits to injured employees while protecting the business from lawsuits.

  • What if I’m a sole proprietor?

    Sole proprietors usually aren’t required to carry coverage but may choose to opt in.

  • Can owners or executives be excluded?

    In many cases, yes. We’ll advise on exclusions that may reduce cost.

  • How do claims work?

    We assist with reporting and managing claims to help employees recover and return to work safely.

Not Sure If You’re Required to Have Coverage?

We’ll review your employee count, industry, and operations—and give you a clear answer.

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Let's Talk

Take Care of Your Team—and Your Business

Workers’ compensation insurance helps employees get the care they need and protects your business from unexpected financial strain. The Bill Yon Agency makes it easy to get coverage right.