Bill Proposes Allowing Tennessee Businesses to “Opt Out” of Workers’ Compensation Coverage

by Staff Blogger | February 25th, 2015

Workers injured on the job often have a right to seek Tennessee workers’ compensation coverage. However, a debate is stirring after two Tennessee lawmakers proposed a bill that would allow businesses in our state to “opt out” of providing this coverage.

Under current law, most businesses are required to purchase insurance that provides Tennessee workers’ compensation benefits to employees injured while working. New regulations proposed under SB0721 would allow businesses to “opt out” if they can demonstrate that they can establish their own private workers’ compensation programs.

An article from The Tennessean says the bill would also cap benefit coverage at 156 weeks unless expenses were greater than $300,000. Current laws allow for coverage as long as treatment is needed.

If the bill passes, Tennessee would only be the third state in the nation to allow businesses to “opt out” of providing employees with workers’ compensation coverage through an insurance policy.

These changes come in the wake of reforms that were implemented last year, such as moving from the use of the state’s court system to a more administrative system.

The Nashville personal injury lawyers with Ponce Law point out these changes highlight the ever-shifting landscape of workers’ compensation law and the need to have an experienced legal representative by your side if you plan to file for Tennessee workers’ compensation benefits.