To get workers compensation in Tennessee, you buy a policy from a private insurer licensed in the state, because Tennessee has no state fund and no government monopoly on coverage. If no carrier will take you on the open market, a guaranteed-issue backstop called the Tennessee Workers Compensation Insurance Plan is there so every employer can get covered one way or another. Larger, financially strong employers can also apply to the Bureau to self-insure.
Who this is for: Tennessee owners buying workers comp for the first time, switching carriers, or worried they are too small or too risky to get a policy.
The short version
- You buy from a private insurer licensed in Tennessee; there is no state fund.
- If no carrier will write you, a guaranteed-issue plan run by the rating bureau NCCI is the backstop.
- Established, financially strong employers can apply to the Bureau to self-insure, alone or in a group.
- Have your payroll, the kind of work, and any claims history ready to get an accurate quote.
- Put coverage in force before you hit your trigger, and get your certificate for clients and general contractors.
Your three routes to coverage
Tennessee gives employers more than one way to secure coverage, and most small businesses use the first.
| Route | Who it fits | How it works |
|---|---|---|
| Private insurer | Almost every small and midsize business | Buy a policy on the open market from a carrier licensed in Tennessee |
| The state insurance plan | Businesses turned down by regular carriers | Guaranteed-issue coverage through the Tennessee Workers Compensation Insurance Plan, run by the rating bureau NCCI |
| Self-insurance | Larger, financially strong employers | Pay claims directly with the Bureau's approval, alone or in an approved group |
The steps to get covered
Getting a policy is straightforward when you have the right information ready. First, gather your details: the kind of work your people do, your payroll by role, your headcount, and any past claims. Second, get quotes from carriers that write your kind of work, because in a loss-cost state like Tennessee prices vary and shopping pays off. Third, bind the policy before you reach your trigger, which for a normal business is your fifth employee and for construction is your first worker. Fourth, get your proof of coverage, a certificate, so you can show clients and general contractors you are insured. An agent can run several carriers for you at once and steer hard-to-place work to the right market.
If you have been turned down
Being declined by a regular carrier does not leave you stuck. The Tennessee Workers Compensation Insurance Plan is a guaranteed-issue backstop, so a new business, a risky trade, or a company with a rough claims history can still get covered. It is often priced higher than the open market, so the goal is to get insured now and work back toward the regular market as your record improves. Separately, a solo owner with no employees who only needs a certificate for a client can look at a low-payroll policy, sometimes called a ghost policy, built around the owner.
A Tennessee plumbing example
Illustrative, not a quote. A Cookeville plumber is about to hire his first two apprentices for residential jobs, and because plumbing is construction he needs coverage from the first worker. He gathers his payroll and the kind of work, and we quote several carriers that write plumbing. One regular carrier declines because the business is brand new, so we place him through the state insurance plan to get him covered on time, then plan to move him to the open market once he has a clean year. He gets his certificate the same week and lands a builder contract that required it. See our workers comp for plumbers page.
Real questions Tennessee owners ask
How do I get workers comp in Tennessee?
You buy a policy from a private insurer licensed in Tennessee, usually through an agent who can shop several carriers. There is no state fund, and if you are turned down a guaranteed-issue plan is the backstop.
Does Tennessee have a state fund I buy from?
No. Tennessee has a private, competitive market, so you buy from any licensed carrier. The only state-linked option is a guaranteed-issue plan for businesses that cannot get covered on the open market.
What if no insurance company will take my business?
You use the Tennessee Workers Compensation Insurance Plan, a guaranteed-issue backstop run by the rating bureau NCCI. It exists so every employer can get covered, though it usually costs more than the open market.
What information do I need to get a quote?
Have the kind of work your people do, your payroll by role, your headcount, and any past claims ready. The more accurate that is, the closer your quote will be to the final price after audit.
When do I need the policy in place?
Before you hit your trigger. For a normal business that is your fifth employee, and for construction it is your first worker. Bind the policy first and get your certificate so you can show clients you are insured.
I am solo and just need a certificate for a client. What are my options?
A solo owner with no employees can look at a low-payroll policy built around the owner, sometimes called a ghost policy, which produces the certificate a client or general contractor asks for.
Can I self-insure my workers comp in Tennessee?
Larger, financially strong employers can, with the Bureau's approval, either alone or as part of an approved group. Most small businesses buy a normal policy from a carrier instead.
Why Tennessee owners choose Morrow
- We shop the right market for you. In Tennessee you buy workers' comp on the open, competitive market from any private insurer licensed in the state, because there is no state fund, and if no insurer will take you the NCCI-run Tennessee Workers Compensation Insurance Plan is the guaranteed backstop, so we can shop your rate freely and still have a fallback for hard-to-place work.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related Tennessee guides
Every Tennessee business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in Tennessee (start here)
- Workers comp: the owner's overview
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- I own a corporation (C-corp or S-corp): do I need it?
- We're a partnership: do we need workers comp?
- We're a nonprofit: do we need workers comp?
- My workers are 1099: do I still need it?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need coverage?
- What happens if I don't carry workers comp?
- How much does workers comp cost?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- What is a ghost workers comp policy?
- Hiring your first employee: what changes
- Tennessee plumber workers comp
This guide is general information, not legal advice. Tennessee rules and penalty amounts can change, so verify current requirements with the Tennessee Bureau of Workers' Compensation or a licensed advisor before you rely on them. Last updated: July 2026.