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HB 476

Comptroller, State - As introduced, increases from $50,000 to $100,000 the bond amount that every insurance company doing a workers' compensation business in this state must furnish with a surety company; increases from $100,000 to $200,000 the certificate amount that such a company may deposit with the commissioner of labor and workforce development in lieu of the bond. - Amends TCA Title 12; Title 29; Title 50 and Title 56.

114th Regular Session (2025-2026) Introduced by Gino Bulso

Doubles workers' compensation insurer bond and deposit requirements from $50K/$100K to $100K/$200K to strengthen claim protections.

Placed on s/c cal Insurance Subcommittee for 3/18/2026
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Bill Summary · HB 476

Legislative bill overview

HB 476 doubles the financial security requirements for insurance companies operating workers' compensation businesses in Tennessee. Specifically, it increases the required surety bond from $50,000 to $100,000 and raises the alternative certificate deposit amount from $100,000 to $200,000 that companies may file with the state labor commissioner instead of a bond.

Why is this important

These financial security requirements protect workers and employers by ensuring insurance companies maintain adequate reserves to cover workers' compensation claims. Doubling these amounts reflects inflation and increased claim costs since the previous thresholds were set, making the protection more meaningful in current economic conditions.

Potential points of contention

  • Regulatory burden on insurers: Requiring higher capital reserves may increase operational costs for insurance companies, potentially leading to higher premiums for employers purchasing workers' compensation coverage
  • Competitive impact: Smaller or regional insurers might face disproportionate difficulty meeting doubled financial requirements compared to large national carriers
  • Adequacy debate: Questions exist whether doubling requirements adequately addresses actual claim exposure or whether the increases are proportionate to inflation and claims growth since prior thresholds were established

Compiled from official sources — confirm details with the bill’s official record.

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