Tennessee Businesses: Did Your Workers’ Compensation Rate Change?
If you own a business in Tennessee, there’s an important workers’ compensation update to know about this October.
A new Workers’ Compensation Loss Cost and Assigned Risk Rate Filing became effective October 1, 2026. The Tennessee Department of Commerce and Insurance (TDCI) approved a 4.8% increase in workers’ compensation loss costs and assigned-risk rates compared with the rates that took effect March 1, 2026.
But there’s an important distinction:
A 4.8% rate change does NOT automatically mean your premium will increase by 4.8%.
Your business's actual workers’ compensation premium can be affected by several factors, including payroll, employee classifications, your experience modification, and the insurance carrier’s rating factors.
So what does this October change actually mean for Tennessee businesses?
What Changed on October 1, 2026?
Tennessee approved a new workers’ compensation filing effective October 1, 2026.
The approved filing increased:
Voluntary-market loss costs by 4.8%
Assigned-risk rates by 4.8%
These are components used in determining workers’ compensation pricing; they aren't necessarily the final premium a particular business will pay. TDCI also publishes carrier-specific workers’ compensation loss-cost multipliers, which can differ by insurance company. Tennessee State Government
That means two businesses with similar payrolls may not necessarily receive the same premium.
Why Does Workers’ Compensation Pricing Change?
Workers’ compensation rates can change as insurers and regulators evaluate factors such as:
Workplace injury frequency
Claims costs
Medical expenses
Payroll trends
Loss experience
Changes in the workers’ compensation market
Earlier in 2026, Tennessee actually implemented decreases. Beginning March 1, 2026, TDCI approved a 2% decrease in overall voluntary-market loss costs and a 1.1% decrease in assigned-risk rates. Tennessee State Government
The October filing represents a change from those March 2026 levels.
Does This Mean Your Workers’ Comp Premium Will Go Up 4.8%?
Not necessarily.
This is probably the biggest thing Tennessee business owners should understand.
Workers’ compensation pricing isn't simply:
Payroll × 4.8% = your new premium
Your premium can depend on factors such as:
👷 Employee Classifications
Different types of work have different workers’ compensation classifications and rates.
For example, an office employee and a construction worker generally don't represent the same level of workplace exposure.
💰 Payroll
Workers’ compensation premiums are generally tied to payroll. Changes in your estimated or actual payroll can affect your premium.
📊 Experience Modification
Your business's claims history can affect its experience modification and, consequently, its workers’ compensation pricing.
🏢 Insurance Carrier
Insurance companies can have different approved loss-cost multipliers and rating factors. TDCI publishes a current list of workers’ compensation loss-cost multipliers by carrier. Tennessee State Government
What Should Tennessee Business Owners Do?
October is a good time to take a closer look at your workers’ compensation policy—especially if your renewal is coming up.
1. Review your payroll.
Has your business grown?
Have you hired additional employees?
Did your payroll estimates change significantly?
Make sure your insurance information reflects your business accurately.
2. Check employee classifications.
If your employees' duties have changed, their workers’ compensation classifications may need to be reviewed.
This can be particularly important for businesses that have expanded into new services.
3. Review your experience modification.
If your business has a history of workers’ compensation claims, your experience modification can have an important impact on your premium.
4. Look at your renewal—not just the percentage change.
A rate change doesn't tell the whole story.
When you receive your renewal, compare the actual premium, payroll, classifications, experience modification, and other rating factors.
5. Talk with your insurance agent.
If the renewal looks significantly different, ask your agent to explain what changed.
A good review can help you understand whether the difference is coming from the statewide filing, your business's payroll, classifications, experience modification, carrier factors, or another rating component.
What About Businesses in the Assigned-Risk Market?
Tennessee also has an Assigned Risk Plan for businesses that cannot obtain workers’ compensation coverage through the voluntary market.
According to the Tennessee Department of Labor and Workforce Development, an employer may qualify for the Assigned Risk Plan after being refused coverage by two or more licensed insurance companies actively writing workers’ compensation in Tennessee. Tennessee State Government
The October 1 filing also includes changes to assigned-risk rates.
If your business is currently in the assigned-risk market, it's especially important to review your coverage and discuss your options with your insurance professional.
Don't Confuse Insurance Rates With Workers' Compensation Benefit Rates
One other important distinction:
Workers’ compensation insurance rates and workers’ compensation benefit rates for injured employees are not the same thing.
The October 2026 insurance filing discussed in this article concerns insurance loss costs and assigned-risk rates.
Tennessee separately publishes workers’ compensation benefit rates that determine certain benefits for injured workers based on factors such as the date of injury. Tennessee State Government
A Simple Example
Imagine a Tennessee business has a workers’ compensation policy that is coming up for renewal.
The business owner hears:
“Workers’ comp rates increased 4.8%.”
That doesn't necessarily mean the business's renewal premium will increase exactly 4.8%.
The final premium could be affected by changes in:
Payroll + classifications + experience modification + carrier rating factors + applicable loss costs
That's why looking at the actual renewal—and not just the headline percentage—is important.
5 Questions to Ask About Your Workers’ Comp Renewal
Before renewing your Tennessee workers’ compensation policy, consider asking:
Did my payroll estimate change?
Are my employee classifications correct?
Did my experience modification change?
How did the October 1 rate filing affect my renewal?
Are there other carriers or coverage options I should review?
These questions can help you understand where your premium is coming from.
Need Help Reviewing Your Workers’ Compensation Coverage?
The October 2026 rate change is a good reminder that workers’ compensation insurance should be reviewed regularly—not just when an employee gets injured or a renewal arrives.
At RISE Insurance, we can help Tennessee business owners review their workers’ compensation coverage, understand renewal changes, and make sure their policy information accurately reflects their business.
📞 423-541-1111
