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Workers' Compensation by state

Workers' compensation requirements in Tennessee

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Direct answer

Does Tennessee require workers' compensation insurance?

Yes. Tennessee requires workers' compensation coverage once a business has five or more employees (construction and coal mining one or more), under the Tennessee Workers' Compensation Act. Tennessee generally requires workers' compensation coverage once an employer has five or more employees, but employers in the construction and coal mining industries must carry coverage with one or more employees.

Reviewed by Cornerstone Staff28 years of financial services state licensing experienceLast verified July 29, 2026

How the mandate works

Tennessee generally requires workers' compensation coverage once an employer has five or more employees, but employers in the construction and coal mining industries must carry coverage with one or more employees. Coverage is provided through private insurers or an approved self-insurance program.

Coverage trigger
Five or more employees (construction and coal mining one or more)
If you go without coverage
Failing to carry required coverage can bring civil penalties assessed by the bureau and personal liability for an injured worker's benefits.

Notable exemptions

Exemptions are narrow and fact-specific; confirm your situation with the regulator or an agent before relying on one.

  • Non-construction employers with fewer than five employees
  • Certain domestic servants, farm labor, and casual employees
  • Some corporate officers and family members who elect out

Statutes and sources

  • Tennessee Workers' Compensation Act

    Tenn. Code Ann. sect. 50-6-101 et seq.

Regulator: Tennessee Bureau of Workers' Compensation . Last verified 2026-07-29 from the official source .

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