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 in 2026 and how to stay compliant.
Workers’ compensation insurance (often called workers’ comp) can protect both employees and employers after a work-related injury or occupational illness. For employees, it can help cover authorized medical care and provide partial wage replacement when time away from work is medically necessary. For employers, it can reduce exposure to certain lawsuits and unexpected costs by routing claims through the state’s workers’ compensation system. Guidance and employer resources are provided by the Tennessee Bureau of Workers’ Compensation.
In Tennessee, most employers outside construction and coal mining must carry workers’ comp when they have five (5) or more full-time or part-time employees. The employee count generally includes corporate officers and family members who meet the definition of employee, even if an officer elects to decline coverage.
Construction: Businesses engaged in the construction industry generally must have workers’ compensation coverage (and rules apply broadly based on the nature of the business). Owners may be required to carry coverage on themselves, with limited exemptions available through the Bureau’s process.
Coal mining: Employers in the coal-mining industry must secure coverage if they have one (1) employee.
If your workforce is reduced to less than five (5) and you are not subject to the construction/coal-mining rules, you can notify the Bureau using Form I-3 (Notice of Reduction).
Tennessee workers’ compensation requirements have exceptions depending on the type of work and the employment relationship. The Bureau’s official “Who Must Carry Insurance” guidance is the best starting point to confirm whether your business (or specific category of worker) is exempt or covered.
Tennessee employers typically obtain coverage in one of these ways:
Purchase a policy from a licensed workers’ compensation insurance carrier, or
Qualify as a self-insured employer through the Tennessee Department of Commerce & Insurance self-insurance process.
If you can’t obtain coverage in the voluntary market, Tennessee provides an assigned-risk option administered by NCCI. Tennessee’s official guidance notes you generally need two private insurance denials to qualify for the NCCI Assigned Risk Plan.
Failing to maintain required coverage can trigger enforcement through Tennessee’s compliance programs. The Bureau’s Uninsured Employers Fund (UEF) notes that businesses may be assessed a financial penalty equal to 1.5 times the employer’s total estimated annual premium.
Separately, Tennessee’s Penalty Program explains that a 25% penalty may apply for failure to pay (or timely pay) temporary disability benefits when assessed by the department.
(For deeper compliance topics and related enforcement tools, see the Bureau’s compliance hub.)
Every Tennessee employer subject to the workers’ compensation law is required to display the Tennessee Workers’ Compensation Insurance Posting Notice in a conspicuous place for employees. The Bureau provides the official posting notice (including translated versions) and posting instructions.
Employee notice: Employees should report injuries immediately. Tennessee guidance states employees generally have fifteen (15) calendar days from when they knew or should have known about the suspected injury to report it to the employer (effective for injuries on or after July 1, 2016).
Employer reporting: Employers must complete the First Report of Injury (Form C-20) and file it with their insurance adjuster within one (1) working day of the employer’s knowledge of the injury (even if the employer questions whether it’s work-related).
Official forms directory (including C-20 and other Bureau forms):
Although compliance matters, carrying workers’ comp is also about protecting your people and your business. If you’re ready to safeguard your company or you want help confirming whether you meet the 5-employee threshold or fall under the construction/coal-mining rules, Beyond is here to support you every step of the way.
