Tennessee Workers' Compensation Insurance
Everything you need to know about workers' comp in Tennessee: when it's required, who's exempt, average rates, and how to get coverage in 60 seconds.
When is workers' comp required in Tennessee?
Required for employers with 5+ employees; construction with 1+.
Sole proprietor & partnership rules
Sole proprietors are exempt unless they elect.
Owner / corporate officer exclusion
Officers may be excluded.
Tennessee-specific notes
Construction has 1-employee threshold.
How much does workers' comp cost in Tennessee?
The average workers' comp rate in Tennessee is approximately $0.97 per $100 of payroll. Your actual rate depends on your industry class code, claims history, payroll size, and carrier.
Example: a Tennessee business with $100,000 in payroll at the state average rate would pay approximately $970 per year. A clerical-only business (class code 8810) would pay much less; a roofing contractor (5551) would pay much more.
Want an exact rate for your business?
Class code rates vary widely. Get a free quote and we'll look up your exact Tennessee rate for your industry.
Get My Tennessee Quote →Tennessee workers' comp by industry
Industry-specific rates, common class codes, and requirements for Tennessee businesses:
Frequently asked — Tennessee workers' comp
Do I need workers' comp if I have only one employee in Tennessee?
Tennessee requires workers' comp once you have 5 or more employees. With fewer than 5 you may be exempt — but check construction-specific rules in your state.
Are 1099 contractors covered under my Tennessee workers' comp policy?
Generally no — true independent contractors are not employees and not covered. However, Tennessee (like most states) applies an "ABC test" or similar to determine if a 1099 worker is actually a misclassified employee. If they're misclassified, you may owe back premium and penalties. Many general contractors require their 1099 subs to carry their own workers' comp.
Can I get pay-as-you-go workers' comp in Tennessee?
Yes — most major carriers offer pay-as-you-go workers' comp in Tennessee, with premium based on actual payroll each pay period instead of a large upfront deposit.
What if I'm being audited by my Tennessee workers' comp carrier?
Workers' comp audits often result in additional premium owed because of misclassified employees, missed payroll, or wrong class codes. We offer free audit reviews and can dispute incorrect classifications with your carrier. In many cases we save clients thousands.