How is a Tennessee workers' comp premium calculated?

The standard formula is (annual payroll divided by 100) multiplied by the class-code rate, then multiplied by your experience modifier. The result is floored at the carrier's minimum premium or expense constant, usually around $200.

What is an experience modifier (EMR)?

The experience modifier compares your past claims history to the expected average for your class. A new or average employer is 1.00; fewer claims than expected gives a credit below 1.00, while a worse-than-average record raises it above 1.00 and increases premium.

Where does my class-code rate come from?

Tennessee is an NCCI state, so each job is assigned an NCCI class code with a published loss cost. Your insurer multiplies that loss cost by its loss-cost multiplier to set the rate per $100 of payroll that you enter here.

Does Tennessee have a state-run workers' comp fund?

No. Tennessee is not a monopolistic state, so employers buy coverage from private carriers or qualify to self-insure. Rates and discounts vary by carrier, so this estimate is a starting point, not a quote.

How do I estimate premium for a business with several job types?

Run the calculator once for each class code, using that class's payroll and rate, then add the results. Clerical staff, drivers, and field crews carry very different rates, so splitting payroll by class matters.

Tennessee Workers' Compensation Premium Calculator

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The Tennessee workers’ compensation premium calculator estimates what an employer will pay for workers’ comp coverage using the same formula carriers use. Tennessee is an NCCI loss-cost state with no monopolistic state fund, so premium is driven by your job class code, your payroll, and your experience modifier. This tool gives a fast, defensible ballpark before you request quotes.

How it works

The base, or manual premium, is (annual payroll ÷ 100) × class-code rate. A classification with a $2.50 rate and $250,000 of payroll produces (250,000 ÷ 100) × 2.50 = $6,250. That figure is then multiplied by your experience modifier (EMR) — 1.00 for a new or average employer — to give the modified premium. Finally the result is floored at the carrier’s minimum premium or expense constant, modeled here at about $200, so very small payrolls do not produce a near-zero premium.

Tips and notes

The rate you enter should already include your carrier’s loss-cost multiplier, because Tennessee publishes loss costs rather than final rates. Employers with several job types should rate each class code separately and sum the results, since clerical and field-labor rates differ widely. Real quotes also reflect schedule credits, deductible programs, premium discounts, and audit adjustments. Treat this as an estimate and confirm specifics with a licensed agent and tn.gov/workforce.