If you are a business owner in Tennessee, we have some good news. The TN Department of Commerce and Insurance recently announced that Tennessee workers’ compensation rates in 2023 will decrease for most businesses.
How Much Will Your Rates Decrease?
In mid-December 2022, The TDCI approved a 10.2% loss cost decrease for workers’ compensation insurance. This marks the 10th consecutive year that rates have decreased in Tennessee.
Workers’ compensation insurance rates are based on a number of factors, including your business’s level of risk, the size of your payroll, and your experience modification factor.
"The continued insurance premium decrease benefits Tennessee’s business climate while keeping our economy strong. By lowering premiums, business owners have the opportunity to re-invest in their company and better serve their employees."
Get the Most Out of the Rate Decrease
Of course, lower rates mean you will be paying less, which allows you to invest more in your company. But here are a few things you should think about to make sure you are getting the most out of this benefit.
Is Your Class Code Correct?
Your business’s class code defines how much risk is associated with your business. What you should know is that there are hundreds of class codes. And sometimes the difference between class codes is miniscule. That means there is a very real possibility that your business is classified incorrectly.
For example, we have a manufacturing client whose previous insurance agent mistakenly assigned them the wrong class code. That manufacturer ended up overpaying tens of thousands of dollars on their workers’ compensation insurance. By fixing their class code, we were able to get their premium down by 30%.
Recover Lost Money
If your previous insurance agent made an error on your company’s workers’ compensation insurance, you can usually recover the money you overpaid. An independent agent who specializes in workers’ compensation insurance can help you with this.
At Veritas, we help businesses recover 100% of the money that were overpaying on their workers’ compensation premiums, and this has resulted in hundreds of thousands of dollars of recovered money. We do this by performing an audit on your past five workers’ comp policies, and past three experience modification factors.
Find an insurance agent who will do this for you, but make sure they are not charging any additional fees to perform this.