Sources reviewed October 27, 2026 · Confirm current rules with the agency
When coverage is required
Tennessee generally requires coverage once you have five or more employees in most industries. Construction businesses generally need coverage from their first employee, with some specific exemptions. Look at the work you actually do. Do not apply the five-worker rule to a business that takes on construction work.
Owners, contractors, and exceptions
When a construction owner is exempt, that does not mean the business's employees can go without coverage. The Bureau of Workers' Compensation uses several factors to decide who is an employee and who is an independent contractor. Out-of-state construction businesses working in Tennessee need Tennessee coverage from the first day. Ask your insurer to list Tennessee in the required states section of your policy.
If an employee is injured
Workers generally must tell you within 15 calendar days after the injury, or after they learn it is work-related. You must send any known or reported injury or illness to your insurer within one working day. Use your insurer's process for the C-20 first report. Do not refuse to report an injury because you doubt the story. Your insurer decides whether it is covered.
Operating without coverage
Tennessee's Uninsured Employers Fund can charge a business without required coverage a penalty of 1.5 times its total estimated yearly premium. Wrongly calling workers independent contractors or subcontractors brings the same penalty. Not following Bureau orders brings more penalties. The fund may pay limited benefits to some injured workers of uninsured employers, but you are still responsible.
How to arrange coverage
Buy a policy from a licensed insurer or get approval to self-insure, and check the doctor-choice and worker-information rules with your insurer. Give supervisors the short reporting deadline and a backup contact. The Bureau's ombudsman can help with questions about the process. Formal claims and disputes have their own rules, so check them quickly.
Benefits and return-to-work planning
A work injury can lead to medical care, time off work, a lasting disability, or benefits for family members if a worker dies. Who qualifies, waiting periods, how wages are figured, and benefit limits all depend on state law and the facts of the claim. Ask your insurer which benefits it is looking at and what records it needs. Go by the doctor's work limits, not your own guess about what the worker can do. If you can offer lighter work, describe the duties and hours clearly and plan it with the doctor and your insurer.
Preparing an accurate cost estimate
Gather payroll by job and location, a description of each type of work, details on working owners, subcontractor records, and your past claims. Ask the insurer to confirm your job classes, how the rate is figured, any experience modifier, the minimum premium, fees, and audit terms. This site's calculator uses a base rate that you enter. It does not give a state-approved rate or a real quote. Compare offers using the same numbers, and track staff and work changes during the year so the final audit is easier.
Forms, posters, and notices
These links go straight to Tennessee’s official forms. Your insurer can often send a poster with your policy details already filled in.
Weekly benefit limits
These limits cap the wage replacement checks an injured worker can get. Medical care is paid separately. Limits change every year, so check the source for the latest figures.
- Maximum
- $1,488.30 a week for temporary benefits
- Minimum
- $202.95 a week
- Applies to
- Injuries from July 1, 2026 to June 30, 2027
The maximum for permanent benefits is $1,353 a week.
Check a contractor’s coverage
For construction work, search the Exemption Registry to see if an owner has a valid exemption. An exemption covers only that owner, never their employees.
Owner exemptions and elections
Construction owners can register an exemption that lasts two years. This includes sole owners with 100%, corporate officers, and LLC members or partners with at least 20%. Outside construction, corporate officers can exempt themselves from the policy but still count as employees unless unpaid.
Frequently asked questions
Is workers' comp required in Tennessee?
Generally yes once a business has five or more employees. Construction businesses need coverage from the first employee, including part-time and family workers.
Do business owners need workers' comp in Tennessee?
Construction owners must cover themselves unless they register an exemption through the state's Exemption Registry. The exemption covers only that person, never the business's employees.
How long does an employee have to report a work injury in Tennessee?
Employees generally must tell the employer within 15 days of the injury or of learning it is work-related. The employer must report it to the insurer within one working day.
What happens if a Tennessee business doesn't have workers' comp?
Tennessee's Uninsured Employers Fund can charge a penalty of up to 1.5 times the employer's estimated annual premium. Misclassifying employees as contractors carries the same penalty.
How do I get workers' comp insurance in Tennessee?
Buy from a licensed insurer or qualify for self-insurance. Out-of-state construction businesses need Tennessee listed on their policy from the first day of work.
How much does workers' comp cost in Tennessee?
Cost depends mostly on your job class codes, the payroll in each class, your experience modifier, and the insurer's rates and minimum premium. Ask a licensed insurer or agent for the base rate for your class code in Tennessee, then use this site's calculator for a rough estimate. Your final premium is set at the yearly audit.
Your next steps
Official sources & further reading
Tennessee BWC: beginner's guideTennessee BWC: construction coverageTennessee DOL: injury notice and reportingTennessee BWC: Uninsured Employers Fund and penaltiesThis summary is for learning, not legal advice. Exceptions and changes may apply. If anything here differs from the official agency or the law, they are what count.