Tennessee Workers’ Comp
Tennessee businesses reach the workers’ compensation requirement at a specific headcount, and construction firms reach it almost immediately. Once you are covered, the state expects fast injury reporting, a posted notice, and an insurer that handles the claim. Below is a practical walkthrough for Tennessee employers—who must buy coverage, how owners can exempt themselves in construction, what to do the day someone gets hurt, and what drives the premium. Freedom Insurance Group is an independent agency licensed in Tennessee, based in Flower Mound, Texas, and serving Texas since 2005.
Quote Tennessee workers’ compensation
Send payroll by job type and your employee count. We shop carriers that write your class.
When Coverage Becomes Mandatory
According to the Tennessee Department of Labor and Workforce Development, employers outside construction and coal mining generally must carry workers’ compensation once they have five or more full- or part-time employees. Corporate officers and family members who meet the definition of employee count toward that five, even if an officer elects to decline coverage. Sole proprietors, partners, and LLC members are excluded from the count.
Construction service providers are treated differently. Employers in the construction industry, and in coal mining, must secure coverage with even one employee. The Department notes that construction employers in the contracting group designated by NCCI must cover their employees and themselves unless they qualify for an exemption.
The Construction Exemption Registry
Tennessee lets certain construction business owners exempt themselves—not their employees—through the Workers’ Compensation Exemption Registry. Based on the state’s published rules, an applicant must be in the construction industry and be one of the following:
- a sole proprietor who owns 100% of the business assets,
- a corporate officer,
- an LLC member with at least a 20% ownership interest, or
- a partner with at least a 20% ownership interest.
Applicants may also qualify when they and family members together hold at least 95% ownership. Exemptions are valid for two years, and exempt owners must still cover every employee, even if there is only one. Contractor license applicants in Tennessee also have to show proof of coverage or a qualifying exemption to the Board for Licensing Contractors.
The Day Someone Gets Hurt
| Who | What Tennessee expects |
|---|---|
| Injured employee | Tell the employer, preferably in writing, within 15 calendar days of the injury or of when a doctor first says it is work-related. |
| Employer | Submit known or reported injuries to the insurer on Form C-20 within one working day of knowledge. Reportable injuries include those needing treatment off your premises, causing missed work, or resulting in death. |
| Insurer | Files the Form C-20 with the Division electronically as soon as possible, and no later than 14 days after knowledge for injuries covered by that deadline. |
| Every covered location | Display the workers’ compensation posting notice with a contact for injury reports and for confirming your carrier. |
The state also cautions employers not to pay for treatment without reporting the injury to the carrier. In our experience, a written in-house procedure—who takes the call, who files the report, which clinic the employee goes to—saves more trouble than any policy feature.
What Drives a Tennessee Premium
Premium follows payroll and classification. A landscaping crew, an office staff, and a delivery driver each carry a different class rate, so describe duties precisely. Larger employers may carry an experience modification based on their own claim history. After the policy year, an audit compares real payroll to the estimate. Owners who use 1099 workers should keep certificates or registry proof on file; uncovered subcontractor payroll is a common audit adjustment.
We do not publish Tennessee price ranges because they would not be accurate for your class and payroll. A quote takes a payroll estimate by job type, prior carrier information, and loss runs if you have them.
How Comp Fits With Your Other Policies
Workers’ comp handles your employees. Customer and vendor injuries belong on Tennessee general liability. Company vehicles belong on Tennessee commercial auto. A combined view lives on our Tennessee small business insurance page, and building owners who lease space can read about Tennessee lessor’s risk.
Tennessee Workers’ Comp FAQs
Do I count myself toward the five employees?
Sole proprietors, partners, and LLC members are excluded from the count. Corporate officers are counted.
I’m a one-person electrician with no employees. Do I need a policy?
Construction owners must cover themselves unless they qualify for and register an exemption. Talk with us about which route fits your licensing and contracts.
How long is a registry exemption good for?
Two years, according to the state.
What if an employee reports an injury late?
Still report it to your carrier right away. The adjuster decides how late notice affects the claim; the employer should not deny it on its own.
Do part-time employees count?
Yes. The five-employee rule counts full- and part-time employees.
Sources and further reading
- Tennessee Department of Labor and Workforce Development: How many employees before coverage is required. Accessed November 2026.
- TDLWD: Which employers must provide workers’ compensation. Accessed November 2026.
- Tennessee Bureau of Workers’ Compensation: Exemptions and Exemption Registry. Accessed November 2026.
- TDLWD: What to do if injured at work (15-day notice, Form C-20). Accessed November 2026.
- Tennessee Bureau of Workers’ Compensation: Reporting a claim. Accessed November 2026.
- Tennessee Bureau of Workers’ Compensation: Employer responsibilities. Accessed November 2026.
- Tennessee Bureau of Workers’ Compensation: Required posting notice. Accessed November 2026.
- Tennessee Board for Licensing Contractors: License application package. Accessed November 2026.
