Insurance
Tennessee construction workers’ comp, and the owner Exemption Registry
Key takeaways
- All Tennessee construction-industry employers (construction service providers) with one or more employees must cover those employees, including seasonal, part-time, family, and “as needed” workers.
- A 1099 form “does not mean they are properly classified,” in the official Tennessee construction page’s wording.
- Owners can apply to exempt themselves through the Exemption Registry. That exemption covers only the named individual, not employees.
- Non-construction employers generally must secure coverage at five or more employees. Minors, working family members, and part-time employees count. Business owners in a sole proprietorship, LLC, or partnership are not included in that five-employee count; corporate officers who work full time are included but may exclude themselves from the policy.
On this page
The official sources for this page, reviewed November 13, 2026, are the Tennessee Department of Labor and Workforce Development pages Who must carry insurance, Construction, and the Workers’ Compensation Exemption Registry.
Construction service providers
Tennessee treats construction differently from many other businesses. If you are a construction service provider with one or more employees, the official construction page requires you to cover those employees from the first worker, including seasonal, part-time, family, and as-needed help. Out-of-state construction service providers must have Tennessee listed in section 3A of the policy from the first day of work in the state, according to that same page.
The official page also warns that issuing a 1099 does not, by itself, mean a worker is properly classified, and it describes a seven-factor test. This website does not apply that test to your helper. If you need a determination, use the official guidance and, when needed, counsel.
The Exemption Registry is personal
Construction owners may apply to exempt only themselves through the official Exemption Registry. The exemption does not cover employees. A general contractor may still require a certificate of insurance as a contract condition. The registry is an official self-serve process, not an insurance offer on this site.
Non-construction shops
For employers that are not in the construction industry, the official “who must carry insurance” page requires coverage at five or more employees. Minors, working family members, and part-time employees are included in the count. For non-construction sole proprietorships, LLCs, or partnerships, business owners are not included in that five-employee count. Corporate officers who work full time are included in the count but may exclude themselves from the policy. Confirm which side of the construction line you are on with the Department; this page does not classify your business.
Frequently asked questions
Do I need Tennessee workers' comp for one construction helper?
The official Tennessee construction page requires construction service providers with one or more employees to cover those employees, including seasonal, part-time, family, and as-needed workers. Confirm with the Department.
Does the Exemption Registry cover my crew?
No. The official registry page and construction page describe an exemption that covers only the named individual, not employees.
When do non-construction Tennessee employers need coverage?
The official who-must-carry page uses a five-or-more employee test, counting minors, working family members, and part-time employees. Owners in a sole proprietorship, LLC, or partnership are not included in that count.
This page summarizes official agency pages retrieved or reviewed on November 13, 2026. It is not legal, tax, or insurance advice, not a quote, and not a recommendation of a specific insurer. Confirm current rules with the linked agency, and with counsel or a licensed agent when you need a determination on your facts.
If you need payroll set up for a first W-2 hire, you can Run payroll with Gusto. Gusto is a payroll service, not the insurer, and this is not a guarantee of a policy, a rate, or savings. In Ohio and North Dakota, do not use a private workers’ compensation policy — start with the official state fund (Ohio BWC or North Dakota WSI). Washington and Wyoming also use official state funds; see the state-fund guide.
Partner link. If you buy or sign up through this link, FirstHire may earn a commission at no extra cost to you. This is not an endorsement, not a quote, and not a guarantee of approval, coverage, or savings. Full disclosure.
When you want a private-market workers’ compensation quote in a state where private policies are sold, you can start with this partner form. We do not recommend a specific insurer, and we do not quote or bind coverage. This option is not a path in Ohio or North Dakota.
Compare a workers’ compensation quote
Partner link. If you request a quote through this link, FirstHire may earn a commission at no extra cost to you. This is not an endorsement or a guarantee of approval, coverage, or savings. Full disclosure.
To get a quote in a private-market state, talk to a licensed agent or a carrier authorized where the work is done. In Ohio, North Dakota, Washington, or Wyoming, start with the official state fund instead of a private policy.