Is it ever worth paying a Workers Comp claim out of pocket?
Great question! Paying a workers' comp claim out of pocket can be risky and is usually not recommended.
When It Might Seem Worth It:
Some employers think about paying out of pocket if:
The injury is very minor (like a small cut or bruise).
The employee doesn’t want to report it.
They want to avoid a premium increase from their insurance provider.
Why It's Usually a Bad Idea:
It may be illegal
In most states, you’re legally required to report any workplace injury and file a claim with your workers’ comp insurer. Paying out of pocket could be considered fraud.You lose protection
Workers’ comp protects you from lawsuits. If you pay out of pocket and the employee later sues, you're on the hook and your insurance won’t help.Minor injuries can turn serious
What seems like a small injury today could turn into a bigger medical issue later — and if you didn’t report it, you could be liable for all of it, possibly with penalties.Insurance audits
If your insurer finds out you paid out of pocket and didn’t report a claim, they could drop your coverage or fine you.
The Safer Route:
Always report the injury to your workers’ comp insurance — even if it seems minor.
Document everything.
Talk with your insurer — some offer first aid exemptions, where very small medical costs won’t count against your premium.
Bottom Line:
In Tennessee, it’s almost never worth paying a claim out of pocket. Even minor injuries can snowball. You're far better off:
Reporting it to your insurer,
Letting them decide how to handle it, and
Staying compliant to avoid fines or lawsuits.
If you need help with your Workers Comp give us a call at 423-541-1111
