Tennessee Senate Bill SB1579

Tennessee 2025-2026 Regular Session

• Introduced: 1/12/26

Caption

AN ACT to amend Tennessee Code Annotated, Title 50, Chapter 6, relative to workers' compensation.

Summary

SB1579 creates a new workers’ compensation insurance category called a “zero estimated exposure policy” for construction services providers. Under the bill, a construction services provider that claims zero estimated exposure must obtain a policy covering workers’ compensation liability, notify all entities it directly contracts with for building construction or improvement services that its estimated exposure is zero, and provide a copy of the policy. Those receiving the notice must keep it and the policy for three years, though homeowners contracting for a single-family residence or primary-residence improvements are exempt from the retention requirement. The bill also requires insurers to obtain a signed attestation from applicants for these policies confirming that the information is accurate, that the applicant has no employees, and that estimated exposure is zero. If the applicant later hires employees or otherwise has exposure above zero during the policy period, the applicant must notify the insurer within 60 days and provide estimated payroll and classification codes. The bill further amends the workers’ compensation reporting provisions to require disclosure of the total estimated exposure amount and classification codes for these zero-exposure policies, and it takes effect July 1, 2027.

Impact

SB1579 amends Tennessee workers’ compensation law in Title 50, Chapter 6 by adding new compliance, disclosure, and recordkeeping requirements for construction services providers seeking zero estimated exposure policies. It affects insurers, construction contractors, entities that contract for construction or improvement services, and in limited circumstances homeowners. It also ties these policies to existing fraud and misrepresentation provisions under Tennessee insurance law by requiring a sworn attestation and notice of changed employment status.

Sentiment

No committee transcripts or recorded votes were provided, so there is no direct evidence of debate, support, or opposition in the available materials. Based on the bill text alone, the measure appears administrative and compliance-focused, aimed at clarifying how zero-exposure workers’ compensation policies are documented and monitored rather than changing broader coverage rules.

Contention

The main potential point of contention is the added compliance burden on construction services providers and the entities that contract with them, since the bill requires written notice, policy copies, retention of records, and updated reporting if exposure changes. Another likely issue is enforcement and accuracy of the zero-exposure attestation, because the bill explicitly addresses misrepresentation and fraud. Homeowner exemptions may also be relevant, as the bill treats residential owners differently from other contracting entities.