Explore the complete page of Tennessee workers’ compensation changes HERE

Tennessee has made a significant update to its workers’ compensation compliance process. The Tennessee Bureau of Workers’ Compensation is now offering a statewide notification system to alert businesses when a workers’ compensation policy is canceled early — before the end of its coverage period.

This change strengthens oversight, improves accountability, and helps protect injured workers, employers, and contractors across the state.

Why This Change Matters

In Tennessee, contractors can be held financially responsible if a subcontractor does not carry valid workers’ compensation insurance and someone is injured on the job.

Under Tenn. Code Ann. § 50-6-914, liability can shift up the contracting chain, meaning:

If a subcontractor drops or cancels coverage, the contractor who hired them may become responsible for the injury claim.

Until now, contractors had no guaranteed way of knowing if a subcontractor’s insurance had been canceled after a certificate was issued. The new Early Cancellation Notification System fills this critical gap.

What’s Changing

Tennessee is now offering a free email notification service that alerts registered users when a workers’ compensation policy is terminated early.

The system:

• Pulls from real-time policy data supplied by the National Council on Compensation Insurance (NCCI)

• Sends automatic alerts when a policy linked to a subcontractor is canceled

• Helps employers verify continued compliance without manual follow-up

• Supports fraud prevention and enforcement efforts statewide

This reduces the risk of unexpected liability, non-compliance fines, and uncovered injuries.

Who Is Most Impacted?

This update is especially important for industries that frequently use subcontractors, including:

• Construction (residential & commercial)

• Roofing, electrical, HVAC, and specialty trades

• Landscaping and outdoor maintenance

• Property management and facility services

• Government contractors and municipal projects

• Insurance carriers and adjusters

• Compliance & risk management professionals

Any business that relies on subcontracted labor now has a better way to ensure the workers on their sites are protected.

What Contractors Should Do Now

While the notification service is a powerful safeguard, it is important to note that the State provides this information as a courtesy. Users must still verify cancellation details directly with the employer or insurer.

A Stronger System for Workers and Employers

This update helps ensure:

• Workers receive the benefits they are legally owed if injured

• Contractors are protected from sudden liability

• Fraud and non-compliance are harder to conceal

• Tennessee maintains a stronger, more accountable labor system

It represents a meaningful step toward a fairer and more transparent workers’ compensation environment.

At RescueMeds: Why This Matters to Us

As a pharmacy supporting injured workers, employers, and legal professionals, RescueMeds sees the real-world impact of workers’ compensation every day.

When coverage lapses, care is delayed, medications are interrupted, and recovery outcomes worsen.

Policies like this — which increase transparency and support compliance — help protect the people who need treatment the most.