Short answer. Every employer with five or more employees. Construction: Construction service providers with one or more employees, and owners of construction businesses must cover themselves unless exempted through the Exemption Registry.
At a glance
- Who must carry it
- Every employer with five or more employees.
- Construction
- Construction service providers with one or more employees, and owners of construction businesses must cover themselves unless exempted through the Exemption Registry.
- Coal mining
- Coal-mining employers must have coverage with even one employee.
- Owners and officers
- Owners of construction businesses must carry coverage on themselves unless they get an exemption from the Exemption Registry.
- Independent contractors
- The Bureau uses a seven-factor test, weighing control of the work most; a Form 1099 instead of a W-2 doesn't decide it.
- Self-insurance
- An employer can qualify as self-insured with the Department of Commerce and Insurance.
- Going without
- A penalty of up to 1.5 times the employer's total estimated annual premium.
- Workplace notice
- Every employer under the law displays the Posting Notice conspicuously, with a separate copy at each location.
- Check a policy
- Use the coverage verification tool; check exemption status on the Exemption Registry. Open the lookup
- Agency
- Tennessee Bureau of Workers' Compensation
In the agency's words
The rule
"every employer in the state that has five or more employees"
Construction
"employers in the construction business or trades (construction service providers) that have one or more employees"
Coal mining
"Employers in the coal-mining industry must secure coverage if they have one (1) employee."
Owners
"Owners of construction businesses are required to carry workers' compensation coverage on themselves."
Contractors
"Even if a worker is provided an IRS Form 1099 instead of a W2."
Going without
"Businesses may be assessed a financial penalty equal to 1.5 times the employer's total estimated annual premium."
Notice
"If the employer has multiple locations, a separate Posting Notice should be posted at each location."
Three example businesses
What the stated rule says for three common setups:
- 2 employees, most businesses (not construction), llc: Not required by the headcount rule. See why
- 4 employees, construction, corporation: Required. See why
- 6 employees, most businesses (not construction), sole proprietor: Required. See why
Your own numbers: open the checker for Tennessee.
Worth knowing
The Uninsured Employers Fund enforces the coverage requirement.
Official sources
- Which employers are required to provide workers' compensation benefits? (Tennessee LWD support) (checked November 2026)
- Construction (Tennessee Bureau of Workers' Compensation) (checked November 2026)
- Uninsured Employers Fund (Tennessee Bureau of Workers' Compensation) (checked November 2026)
- Required Posting Notice (Tennessee Bureau of Workers' Compensation) (checked November 2026)
General information, not legal or insurance advice; we are not lawyers or insurance agents. Rules as published on the pages above, checked November 2026. We don't recommend or sell any insurer; the agency or a licensed agent can say how a rule applies to your business.
Common questions
Who has to carry workers' comp in Tennessee?
Every employer with five or more employees. The agency puts it as "every employer in the state that has five or more employees."
Is the rule different for construction in Tennessee?
Yes. Construction service providers with one or more employees, and owners of construction businesses must cover themselves unless exempted through the Exemption Registry.
Do owners and officers need coverage in Tennessee?
Owners of construction businesses must carry coverage on themselves unless they get an exemption from the Exemption Registry.
What about independent contractors in Tennessee?
The Bureau uses a seven-factor test, weighing control of the work most; a Form 1099 instead of a W-2 doesn't decide it.
What happens to a Tennessee employer with no coverage?
A penalty of up to 1.5 times the employer's total estimated annual premium.
What notice must a Tennessee employer post?
Every employer under the law displays the Posting Notice conspicuously, with a separate copy at each location.
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