It depends heavily on what you make. There is no single "manufacturing" class code, so the honest answer is a range: roughly $1.00 per $100 of payroll for lighter, low-hazard production up to $5.00 or more for heavy metal, woodworking, or machinery work, before the experience mod. A mid-hazard Tennessee manufacturer with about $1,000,000 in production payroll might land somewhere in the $18,000 to $40,000 a year range — but the real number swings on your product code mix, how production, warehouse, and clerical payroll are split, and your claims history. These are general ranges to set expectations, not a quote.
People ask "what's the manufacturing rate in Tennessee?" the way they'd ask about restaurants or offices — but manufacturing doesn't work that way. NCCI class codes for manufacturers are keyed to the product and the process, and a bakery, a plastics fabricator, and a machine shop are not remotely the same risk. Rates across those codes can vary three to four times over. That's why a real answer has to start with what you actually build.
Tennessee uses NCCI class codes, the same national framework as most Southeastern states. A directional sampling of common manufacturing codes and the range of hazard they carry:
| Class code (illustrative) | Type of manufacturing | Relative hazard / rate per $100* |
|---|---|---|
| 2000s | Food products manufacturing | Lower–mid ~$1.50 – $3.00 |
| 4459 | Plastics goods manufacturing | Mid ~$2.00 – $3.50 |
| 2731 / 2883 | Woodworking / furniture assembly | Higher ~$3.00 – $5.00+ |
| 3632 | Machine shop NOC | Mid–higher ~$2.50 – $4.50 |
| 3400 | Metal goods / stamping | Higher ~$3.00 – $5.00+ |
| 8018 | Warehouse / storage (separate function) | Lower–mid ~$2.00 – $3.50 |
| 8810 | Clerical / office staff | Lowest ~$0.10 – $0.30 |
*Illustrative general hazard ranges for setting expectations only, before experience mod and carrier credits/debits. Actual filed rates in Tennessee vary by carrier and process and change over time. Codes shown are directional, not a classification opinion. Not a quote.
The takeaway from that table: the same dollar of payroll can be rated very differently depending on the code it lands in. An office administrator, a forklift operator in the warehouse, and a press operator on the production floor should not all be rated at the production-floor rate — but that's exactly what happens when payroll isn't split by verifiable job function.
Every manufacturer has a governing class code — the single production code that carries the largest share of non-clerical payroll. The trap is letting that governing code absorb payroll that belongs elsewhere. If your press operators, your shipping crew, and your office staff all get reported under one heavy production code, you'll pay the heavy rate on all of it. Standard exceptions like clerical (8810) and, where it genuinely applies, a separate warehouse code, exist precisely so that lower-hazard work is rated on its own. Documenting who does what — with job descriptions and payroll records that back it up — is what keeps the auditor from defaulting everything to the governing code.
Say you run a Tennessee metal-goods shop with $1,000,000 in total payroll, split as $700,000 in press and fabrication staff (a higher-rated production code), $200,000 in a separate warehouse/shipping function (8018), and $100,000 in office and admin (8810). Rated accurately, the office and warehouse dollars are pulled out of the high production rate and priced on their own much lower rates — a meaningful saving. Report the whole $1,000,000 under the production code instead, and you're paying the fabrication rate on $300,000 that never touched a press. Multiply a rate gap of several dollars per $100 across $300,000 of payroll and the difference runs into five figures a year. That's the money accurate splits protect.
Tennessee law generally requires employers with five or more employees to carry workers' compensation, counting full-time and part-time workers. (Construction and coal-mining employers must carry it with even one employee.) Nearly every real manufacturing operation is over the five-employee line. Certain owners and corporate officers can elect out where the law allows, but the requirement sweeps in essentially all Tennessee manufacturers. Going without isn't just a legal exposure — a single amputation or caught-in injury on a press or saw can dwarf years of premium.
Bettr Coverage is an independent commercial insurance agency serving Tennessee and the Southeast. We write manufacturing workers' comp alongside the rest of the program — general liability, property, equipment, and commercial auto — and we shop each account across multiple carriers that view your product differently, checking the product class codes and payroll splits most agents skip. We work owner-to-owner and review your whole program together instead of one line at a time.
Bettr Coverage shops your workers' comp, general liability, property, equipment, and commercial auto across multiple carriers — one agency, one relationship, the product codes and payroll splits checked and the whole program reviewed together.
Get a free coverage reviewIt depends on what you make. Rates run from about $1.00 per $100 of payroll for lighter production to $5.00+ for heavy metal, wood, or machinery work, before the mod. A mid-hazard shop with $1M production payroll often lands around $18,000–$40,000/yr depending on code mix and claims history.
There isn't one — NCCI codes are keyed to the product: food in the 2000s, plastics ~4459, woodworking ~2731/2883, machine shop ~3632, metal stamping ~3400, warehouse ~8018, clerical 8810. Your process determines the code.
The single production code carrying the largest share of your non-clerical payroll. The trap is letting it absorb warehouse and office payroll that should be rated lower — that's how manufacturers overpay.
Yes for most — Tennessee generally requires it at five or more employees. Construction and coal require it with one. Nearly every real manufacturer is over the five-employee line.
Total payroll, the product codes, payroll splits, experience mod, and how carriers view your machine guarding, lockout/tagout, and ergonomics. A mod above 1.0 and lumped payroll push it up; accurate splits and a strong safety program pull it down.
Yes — manufacturing workers' comp alongside GL, property, equipment, and commercial auto, shopped across multiple carriers.
For general information only. Not a quote or contract of insurance. Premium ranges and class-code rates shown are illustrative estimates for setting expectations, not filed rates, and vary by carrier, payroll, class code, experience mod, and underwriting; rates change over time. Class codes referenced are directional examples, not a classification opinion for any specific operation. Workers' compensation requirements are set by Tennessee law and administered by the Tennessee Bureau of Workers' Compensation — confirm current requirements with a licensed agent or the applicable state authority. Coverage subject to policy terms and carrier appetite.