Construction Supervisor workers comp rate in Tennessee
The filed workers comp rate for class code 5606 (Construction Supervisor) in Tennessee is $0.320 per $100 of payroll. On $500,000 of payroll, that is roughly $1,600 in base premium.
Workers comp rules in Tennessee affecting code 5606
Tennessee uses NCCI for workers comp rate setting. Coverage is mandatory once an employer crosses the threshold of Employers with 5 or more employees are generally required to carry workers' compensation insurance, with exceptions for certain industries..
Subcontractor coverage in Tennessee
General contractors are generally liable for the workers' compensation coverage of uninsured subcontractors and their employees.
Owner-exclusion rules for code 5606
Tennesseeallows business owners to file an election excluding themselves from workers comp coverage. Excluding $80,000 of owner payroll at $0.320 saves $256 per year.
1099 contractor handling
Workers are generally presumed to be employees unless they meet specific criteria for independent contractor status, often based on control and economic dependence.
Penalty for failing to carry coverage
Penalties for non-compliance include fines, stop-work orders, and potential criminal charges, with employers liable for all medical expenses and lost wages.
Audit window after policy expiration
After your policy expires, Tennessee's rating authority allows within 90 days of policy expiration for a premium audit. Code 5606 payroll discovered late can result in additional premium owed. Maintain segregated payroll records for at least the audit window plus one year.
Ways to lower your premium for code 5606 in Tennessee
Most employers paying for code 5606 could reduce annual premium by 10-30% by applying one or more of the levers below. Each is grounded in Tennessee-specific rules where applicable.
- Experience modifier (EMR): A 0.85 EMR (well-managed) cuts $0.320 to $0.272 per $100, saving roughly $240 on a $500K payroll. A 1.25 EMR (loss-burdened) inflates it to $0.400. Build a lower EMR by reducing claim frequency (every claim hurts the modifier even if dollar cost is small).
- Schedule credits: Tennessee permits up to 25% schedule credit at underwriter discretion. At $0.320, a 7% credit lowers your effective rate to $0.298 per $100.
- Deductible plans: Per-claim or aggregate deductibles ($1K-$10K typical) cut premium 5-15%. Best fit when historical claim count is low.
- Reclassify payroll: Code 5606 may be applied too broadly. If a portion of payroll is genuinely clerical and properly segregated, that portion can be reported as code 8810 (clerical) at $0.10-$0.30 per $100.
- PEO or staff leasing: A Professional Employer Organization can pool your code-5606 payroll with similar businesses in Tennessee, often securing better blended rates than your standalone EMR can achieve.
- Dividend or retro plans: Some carriers offer participating policies that return a dividend if your loss ratio stays below a target. Best for employers with predictably good loss experience.
- Wrap-up policy for projects: For larger code-5606 operations (especially construction), an OCIP or CCIP wrap can consolidate coverage at lower aggregate cost.
Common claim drivers in construction affecting code 5606
Rate filings for code 5606 reflect what actually drives claim cost for this occupation across NCCI's national experience and Tennessee's state-specific loss data. The largest drivers behind the $0.320 rate are typically:
- Falls from elevation. OSHA cites falls as the leading construction injury cause; typically 25-35% of code-rate cost.
- Struck-by / caught-between. Vehicle, equipment, and falling-object injuries account for 15-20% of construction claims.
- Cumulative trauma. Back and shoulder injuries from repetitive lifting and overhead work drive long-tail claim costs.
Targeting these in your safety program produces the largest EMR improvement. Most claim-frequency reductions come from controls on the top two drivers above; severity reductions require return-to-work programs and aggressive medical management.
FAQ
What is the workers comp rate for code 5606 in Tennessee?
The filed workers comp loss cost or rate for NCCI class code 5606 in Tennessee is $0.320 per $100 of payroll.
How much would I pay on $500,000 payroll?
At $0.320 per $100, $500,000 yields a base premium of $1,600 before EMR and schedule credits. With an EMR of 0.85, effective rate is $0.272; with 1.25, it is $0.400.
Where else can I see code 5606?
UT has the cheapest filed rate ($0.150) and NY the highest ($2.56). Tennessee sits at the 23th percentile across 22 peer states.
Can I get a schedule credit on code 5606 in Tennessee?
Tennessee permits up to 25% schedule credit. At $0.320, a 10% credit lowers effective rate to $0.288 per $100.
Can I exclude myself from code 5606 coverage in Tennessee?
Yes. Tennessee allows business owners to file an election excluding themselves from workers comp coverage on their own payroll.