Plenty of Tennessee businesses hire out the work they do not do themselves: janitorial crews for an office, landscapers for a property manager, a maintenance outfit for a set of rental cabins, a security company for an event venue. When one of those workers gets hurt on your job, the first question is whose workers' comp pays. Tennessee Code § 50-6-113 says the answer can be yours.
| Rule | What § 50-6-113 says |
|---|---|
| Who can be liable | A principal contractor, intermediate contractor, or subcontractor, for an injured employee of any of its subcontractors |
| How much | To the same extent as the immediate employer |
| Who is claimed against first | The immediate employer |
| Recovery limit | Full compensation from one employer bars recovery against the others |
| Where the injury must happen | On, in, or about premises where the principal contractor is doing the work or that it controls |
| Getting your money back | A contractor who pays can recover from whoever was otherwise liable, or an intermediate contractor |
| Optional coverage election | A subcontractor can be covered under the general contractor's policy by written notice to the Bureau; ending it takes effect 30 days after notice |
| Exception | Does not apply to a construction services provider as defined in § 50-6-901 |
Source: Tennessee Code § 50-6-113.
Liability "to the same extent as the immediate employer"
The statute says a principal contractor, intermediate contractor, or subcontractor is liable for compensation to any employee injured while working for one of its subcontractors on the subject matter of the contract, to the same extent as the immediate employer. If your subcontractor has no coverage, or its coverage lapsed, the injured worker's benefits can land on the business above it in the chain.
The immediate employer comes first
Every claim under the section must first be presented to and filed against the immediate employer. That step does not waive the worker's right to recover from the principal or intermediate contractor. The worker can collect full compensation only once: collecting from one employer bars recovery against the others, and the total cannot exceed the amount any one contractor is liable for.
It depends on where the injury happens
The section applies only when the injury occurred on, in, or about the premises where the principal contractor has undertaken to do the work, or premises otherwise under its control or management. An injury at the subcontractor's own shop across town is a different situation.
If you pay, you can try to recover it
A contractor that pays compensation under the section may recover the amount from any person who would have been liable for the compensation anyway, or from any intermediate contractor. Recovery depends on that party having the means to pay, which is why proof of coverage up front matters more than a lawsuit later.
The coverage election
A subcontractor working for a general contractor may elect to be covered under the general contractor's workers' comp policy, with the contractor's written agreement, by filing written notice on the Bureau's form. The statute puts the filing on the general contractor. The election does not change the subcontractor's independent contractor status for any purpose other than workers' comp, and either side can end it by written notice; termination takes effect 30 days after notice to the Bureau and the other parties.
Construction is handled separately
The statute ends with an exception: it does not apply to a construction services provider as defined in § 50-6-901. Construction businesses work under the separate construction provisions of the workers' comp law, including the owner exemption registry: Tennessee construction business owners can exempt themselves from workers' comp, but every employee must still be covered.
A checklist before the next vendor starts
- Collect a current certificate of insurance showing workers' compensation, not just general liability.
- Verify the policy is active with the state: TDCI’s workers’ comp page says verify coverage online — a certificate may not warn you of cancellation.
- Put the coverage requirement and a renewal-date reminder in the written contract.
- Ask your agent whether your own policy's audit will pick up payments to uninsured subcontractors.
- If you cannot find coverage in the regular market, read TDCI explains how Tennessee employers buy workers’ comp and reach the residual market.
- Know what happens when an employer has no coverage at all: Tennessee’s Uninsured Employers Fund caps benefits at $40,000 for workers hurt on the job without coverage.
Once an injury happens, the notice and doctor-panel rules are here: Tennessee workers generally have 15 days to report a job injury, and most employers then owe them a choice of three doctors. Wage benefit timing is explained here: Tennessee workers' comp does not pay lost wages for the first seven days unless the disability lasts 14 days. And the deadline to ask the Bureau to decide a dispute: Most injured Tennessee workers have one year to file a Petition for Benefit Determination before the claim is barred.
This article is informational only. It summarizes a Tennessee statute and is not legal advice. It does not promise coverage, eligibility, or any benefit; your policy, your contracts, the facts, and the Bureau of Workers' Compensation control.
Related reading from All Seasons
- Tennessee construction business owners can exempt themselves from workers' comp, but every employee must still be covered.
- TDCI’s workers’ comp page says verify coverage online — a certificate may not warn you of cancellation.
- TDCI explains how Tennessee employers buy workers’ comp and reach the residual market.
- Tennessee’s Uninsured Employers Fund caps benefits at $40,000 for workers hurt on the job without coverage.
- Tennessee workers generally have 15 days to report a job injury, and most employers then owe them a choice of three doctors.
- Tennessee workers' comp does not pay lost wages for the first seven days unless the disability lasts 14 days.
- Most injured Tennessee workers have one year to file a Petition for Benefit Determination before the claim is barred.
Free policy review
All Seasons Insurance Group offers a free personal policy review. Call 865-263-1400 or visit asigtn.com/get-a-quote/. This article is informational only and does not promise coverage or eligibility; your policy forms control. Seasons change. So should your coverage.
Can I owe workers' comp to someone I did not hire directly?
Yes. Tennessee Code § 50-6-113 makes a principal contractor, intermediate contractor, or subcontractor liable for compensation to an injured employee of its subcontractors, to the same extent as the immediate employer.
Who does the injured worker file against first?
The statute says every claim under the section must first be presented to and filed against the immediate employer.
Can the worker collect from both me and the subcontractor?
No. Collecting full compensation from one employer bars recovery against the others, and the total cannot exceed what any one contractor is liable for.
Does it matter where the injury happened?
Yes. The section applies only when the injury occurred on, in, or about premises where the principal contractor is doing the work or that it controls or manages.
If I pay the claim, can I get the money back?
A contractor who pays under the section may recover the amount from anyone who would otherwise have been liable to pay compensation, or from any intermediate contractor.
Can a subcontractor be covered under my workers' comp policy?
A subcontractor may elect coverage under the general contractor's policy with the contractor's written agreement by filing written notice with the Bureau; the general contractor is responsible for filing it.
Does this section apply to construction contractors?
No. The statute says it does not apply to a construction services provider as defined in § 50-6-901; construction is handled under separate provisions.
How can All Seasons help after reading this?
Call 865-263-1400 or visit asigtn.com/get-a-quote/ for a free personal policy review. Informational only; no coverage promises. Seasons change. So should your coverage.
