Tennessee workers' compensation insurance: Your guide to requirements and getting a policy
If you’re a Tennessee employer looking to protect both your business and your team, you’re in the right place. At Beyond, we provide the essential information you need to understand how workers’ compensation works and how to stay compliant.
Having a workers’ compensation policy, often called “workman’s comp”, can offer significant protection for both employees and employers. If a worker suffers a job-related injury or illness, coverage can help by providing partial wage replacement, medical benefits, and temporary or permanent disability support while the employee recovers.
From the employer’s side, this coverage typically protects businesses from legal liability, reducing the risk of costly lawsuits stemming from workplace accidents or occupational illnesses.
In Tennessee, employers with five (5) or more full-time or part-time employees are legally required to carry workers’ compensation insurance. This count includes family members, part-time staff, and corporate officers, even if those officers choose to exclude themselves from coverage.
An “employee” is generally someone under direct supervision, using company-provided equipment, and working primarily for one employer.
Construction companies must carry coverage regardless of the number of employees.
Coal mining operations are required to carry coverage with just one or more employees, unless exempt.
If your workforce drops below five employees (and you’re not in construction or coal mining), you may file Form I-3: Notice of Withdrawal with the Tennessee Bureau of Workers’ Compensation to formally discontinue coverage.
There are several exemptions to Tennessee’s workers’ compensation requirements:
State/local government agencies, farm laborers, and domestic workers are generally not required to carry coverage but may opt in voluntarily.
Sole proprietors, LLC members, and partners aren’t counted toward the five-employee threshold.
Corporate officers can exempt themselves from coverage but are still counted as employees unless they’re uncompensated.
If a non-covered employer has a workplace injury, the affected employee cannot claim workers’ comp benefits, but they can sue the employer in civil court.
Tennessee employers can purchase workers’ comp coverage from any licensed private insurance carrier. There are roughly 400 insurers approved by the Department of Commerce and Insurance.
If private options are unavailable due to high-risk classification, employers can obtain coverage through the NCCI (National Council on Compensation Insurance).
Failing to maintain proper workers’ compensation coverage may result in:
Fines of $10,000 or more
A 25% penalty for failing to pay required temporary disability benefits
The risk of civil litigation from injured employees
Check the Tennessee Bureau of Workers’ Compensation site for a full list of potential penalties.
Tennessee employers are also required to display a poster in a visible area at the workplace showing their workers’ comp insurer’s name.
Employees must notify their employer within 15 calendar days of an incident or diagnosis from a physician linking the injury/illness to the job.
Employers must report injuries on the Tennessee Employer’s First Report of Work Injury or Illness (Form C-20) within one business day of learning about the incident. This includes:
Medical treatment outside the workplace
Injuries resulting in death
Missed work or permanent impairments
Although meeting compliance is important, having a workers’ compensation policy through Beyond is about more than just regulations, it’s about protecting your team and your business. If you’re ready to safeguard your company or want help setting up coverage, Beyond is here to support you every step of the way.
