Tennessee workers’ comp rates decline for 13th consecutive year in 2026

Tennessee Workers’ Comp Rates Decline for 13th Consecutive Year in 2026

NASHVILLE – The Tennessee Department of Commerce and Insurance (TDCI) announces that workers’ compensation insurance premiums will decline for most Tennessee businesses in 2026 for the 13th consecutive year.

“We are proud to announce the latest rate decrease for workers’ compensation insurance premiums in Tennessee,” said Governor Bill Lee. “Lower premiums allow business owners to have the flexibility they need to re-invest in their companies and continue to support Tennessee’s strong economy. I thank the Department of Commerce and Insurance for its work serving Tennesseans.”

On Dec. 23, 2025, TDCI Commissioner Carter Lawrence signed orders approving a 1.1% percent decrease in the assigned risk rate level and approving a 2% percent overall loss cost decrease for the voluntary market beginning March 1, 2026, on new and renewal policies.

This latest rate decrease will likely lead to a decrease in insurance premiums for 2026.

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

“Safer workplaces where Tennessee workers are receiving fewer injuries on the job are helping contribute to the latest loss cost reduction,” 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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