Key Takeaways
- Tennessee employers with 5 or more employees must carry workers' compensation insurance
- Construction employers must have coverage for ALL employees regardless of number
- Workers' compensation is a no-fault system - employees receive benefits regardless of who caused the injury
- Benefits include medical expenses, temporary disability, permanent disability, and death benefits
- Tennessee Bureau of Workers' Compensation oversees the program under TDCI
Last updated: January 2026
Tennessee Workers' Compensation Insurance
Workers' compensation provides benefits to employees injured on the job.
Tennessee Coverage Requirements
Who Must Carry Workers' Compensation
| Business Type | Requirement |
|---|---|
| General employers | 5 or more employees |
| Construction employers | ALL employees (no minimum) |
| Coal mining | ALL employees |
| State and local government | Required |
| Agricultural employers | 5 or more regular employees |
Exam Tip: Construction employers in Tennessee must carry workers' compensation for ALL employees, with no minimum employee threshold.
Exempt Employers
- Employers with fewer than 5 employees (except construction)
- Sole proprietors (may elect coverage)
- Partners (may elect coverage)
- Some domestic workers
- Some agricultural workers
No-Fault System
Workers' compensation is a no-fault system:
How It Works
| Feature | Description |
|---|---|
| No Fault Needed | Benefits paid regardless of who caused injury |
| Exclusive Remedy | Generally bars lawsuits against employer |
| Automatic Coverage | All covered employees protected |
| Employer Pays | Employer pays premium, no employee contribution |
Exclusive Remedy Doctrine
- Employee gives up right to sue employer for negligence
- Employee receives guaranteed benefits
- Some exceptions for intentional harm
- Third-party lawsuits still permitted
Workers' Compensation Benefits
Types of Benefits
| Benefit Type | Description |
|---|---|
| Medical Benefits | All reasonable and necessary medical treatment |
| Temporary Total Disability (TTD) | Weekly benefits during recovery |
| Temporary Partial Disability (TPD) | Partial wage replacement while working restricted duty |
| Permanent Partial Disability (PPD) | Compensation for permanent impairment |
| Permanent Total Disability (PTD) | Lifetime benefits if unable to work |
| Death Benefits | Benefits to dependents |
| Vocational Rehabilitation | Retraining for new employment |
Tennessee Workers' Compensation Benefits
Temporary Total Disability (TTD)
| Feature | Details |
|---|---|
| Waiting Period | 7 days (retroactive if disability exceeds 14 days) |
| Benefit Rate | 66 2/3% of average weekly wage |
| Maximum Weekly | Subject to state maximum (adjusted annually) |
| Minimum Weekly | Subject to state minimum |
| Duration | Until maximum medical improvement (MMI) |
Permanent Partial Disability (PPD)
- Based on impairment rating from physician
- Uses AMA Guides to Evaluation of Permanent Impairment
- Multiplied by number of weeks for body part
- Paid after reaching MMI
Death Benefits
| Benefit | Details |
|---|---|
| Burial Allowance | Up to maximum set by statute |
| Weekly Benefits | 66 2/3% of AWW to dependents |
| Duration | Maximum weeks based on dependency |
Tennessee Bureau of Workers' Compensation
The Bureau operates under TDCI and:
- Administers workers' compensation program
- Resolves disputes through mediation
- Maintains statistical data
- Certifies self-insured employers
- Oversees ombudsman program for unrepresented employees
Filing a Claim
- Employee reports injury to employer immediately
- Employer files first report of injury
- Treatment authorized by employer or insurer
- Benefits paid or disputed
- Mediation if dispute arises
- Hearing before judge if unresolved
Workers' Compensation Policy Parts
| Part | Coverage |
|---|---|
| Part One | Workers' compensation benefits per state law |
| Part Two | Employers liability (lawsuits not covered by Part One) |
Employers Liability Limits
Standard limits often:
- $100,000 per accident
- $500,000 policy limit for disease
- $100,000 per employee for disease
Test Your Knowledge
How many employees must a Tennessee employer have before workers' compensation coverage is required?
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Test Your Knowledge
A Tennessee construction company has 3 employees. What is their workers' compensation requirement?
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D
Test Your Knowledge
What percentage of average weekly wage does Tennessee workers' compensation pay for temporary total disability?
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D
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