Small-business cover in Tennessee.
Workers’ comp threshold in Tennessee: Non-construction: 5+ employees; construction (CSPs): required for all employers with 1+ employee[S].
Updated 2026-05-16 · Beaconcover editorialThe short answer: In Tennessee, construction service providers need workers' compensation from the first employee and other employers from the fifth. Most clients and licenses also ask for general liability before you can take a job.
What does Tennessee require?
Non-construction: 5+ employees; construction (CSPs): required for all employers with 1+ employee[C]
Tennessee generally requires workers' comp at five or more employees for non-construction employers. All construction service providers (CSPs) must carry coverage from the first employee, regardless of business size. Contractors above a monetary threshold require a state license. Regulated by the Tennessee Department of Labor & Workforce Development Bureau of Workers' Compensation.
What licensing and bonding does Tennessee require?
- Construction service providers hit the workers' comp requirement at employee one
- Contractor licensing keyed to project monetary thresholds