Tennessee Workers’ Comp Rates Decline for 12th Consecutive Year in 2025

NASHVILLE -- The Tennessee Department of Commerce and Insurance (TDCI) announces that workers’ compensation insurance premiums will decline for most Tennessee businesses in 2025 for the 12th consecutive year.

“We are proud to announce yet another rate decrease for workers’ compensation insurance premiums," said Governor Bill Lee. “Lower premiums allow business owners to have the flexibility they need to re-invest in their companies. I thank the Department of Commerce and Insurance for its work to serve Tennesseans.” 

On Dec. 27, 2024, TDCI Commissioner Carter Lawrence signed the order approving a 3.6% percent overall loss cost decrease for the voluntary market beginning March 1, 2025, on new and renewal policies. 

This rate decrease allows carriers to blend the National Council on Compensation Insurance (NCCI) loss cost filings with company experience and expenses to develop insurance premiums for the coming year. 

Since Tennessee’s workers’ compensation system reforms began in 2014, Tennessee employers have seen substantial savings with these loss cost reductions.

“The loss cost reduction can be contributed, in part, to safer workplaces where workers are receiving fewer injuries on the job,” said Commissioner Lawrence. “These reductions indicate a healthier workplace for Tennesseans as they result from decreases in lost time claim frequency and more stable claims costs."

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