Before you can start taking on jobs as a contractor in Tennessee, you may be required to obtain a contractor license bond. This bond serves as a financial guarantee that you’ll operate under state laws, fulfill your contractual obligations, and conduct business ethically. It also protects clients and the public in the event of non-compliance or disputes.
On this page, we’ll cover the essentials of the Tennessee contractor license bond: who needs one, how much it typically costs, and how to get bonded quickly so you can begin working without delays.
Tennessee Contractor License Bond Requirements
The required bond type and amount in Tennessee depend on the nature of your business activity and financial qualifications.
For example, the TN Board for Licensing Contractors requires applicants for a home improvement license, planning to work on projects between $3,000 and $25,000, to post a $10,000 bond. This bond requirement applies in the following counties: Bradley, Davidson, Hamilton, Haywood, Knox, Marion, Robertson, Rutherford, and Shelby.
The bond must be submitted using the official form provided by the Board. It is continuous and must remain active throughout the entire licensing period.
Projects over $25,000 require a TN contractor license. Applicants for this license may also need to post a surety bond. This is typically the case if they cannot provide a Line of Credit (LOC) or Guaranty Agreement (GA), if a parent company cannot act as indemnitor, or when the Board requests additional financial assurance.
General contractor bond amounts in Tennessee are based on your license’s monetary limit:
- $500,000 bond for contractors with limits under $1,500,000
- $1,000,000 bond for contractors with limits over $1,500,000
Bryant Surety Bonds offers all types of Tennessee contractor bonds. Start your application online today to get a free quote and secure the bond you need to stay licensed and compliant.
How Much Does the Tennessee Contractor Bond Cost?
If you are required to post a bond when applying for a contractor or home improvement license in Tennessee, don’t worry - this doesn’t mean paying the full bond amount out of pocket. Instead, you’ll pay a bond premium, which is just a fraction of the total bond value.
Your premium is determined based on your credit score, business financials, and experience. Applicants with strong credit may qualify for lower rates, while those with challenged credit may pay a higher percentage. Premiums typically range between 1% and 3%, depending on financial credentials.
Contractor bonds in Tennessee must be kept active throughout the duration of the license. Most are issued for one-year terms and require annual renewal. Failing to renew your bond can result in license suspension or penalties.
Below is a breakdown of common Tennessee contractor bond amounts and their typical starting premium rates. Keep in mind, this isn’t a complete list. Bond requirements can vary by license type and by city or county, so it’s important to check with your local licensing authority to ensure full compliance.
| Bond Type | Bond Amount | Bond Cost |
|---|---|---|
| State-Level Contractor License Bonds | ||
| General Contractor Bond (for limits under $1,500,000) | $500,000 | Starting from $5,000 |
| General Contractor Bond (for limits over $1,500,000) | $1,000,000 | Starting from $10,000 |
| Home Improvement Contractor Bond | $10,000 | Starting from $100 |
| Fire Protection Sprinkler Systems Contractor Bond | $10,000 | Starting from $100 |
| Manufactured Home Stabilizing System Installer Bond | $10,000 | Starting from $100 |
| Manufacturer of Modular Building Units Bond | $100,000 | Starting from $1,000 |
| Dealer of Modular Building Units Bond | $50,000 | Starting from $500 |
| Installer of Modular Building Units Bond | $25,000 | Starting from $250 |
| Municipality-Specific Contractor Bonds | ||
| City of Chattanooga Street Obstruction and Excavation Bond | $25,000 | Starting from $250 |
| City of Chattanooga Out-of-State Contractor Bond | $1,000-$100,000 | Starting from $100 |
| City of Franklin Contractor Bond | $10,000 | Starting from $100 |
| City of Franklin Contractor Security Agreement Bond | $10,000 | Starting from $100 |
| City of Gallatin General Contractor Permit Bond | $50,000 | Starting from $500 |
| City of Gallatin Electrical, Plumbing, Gas, Mechanical, and Excavation Contractor Bond | $10,000 | Starting from $100 |
| City of Goodlettsville General Contractor Permit Bond | $10,000 - $50,000 | Starting from $100 |
| City of Goodlettsville Electrical, Plumbing, Gas, or Excavation Contractor Bond | $40,000 | Starting from $400 |
| Hamilton County Contractor License Bond | $10,000 | Starting from $100 |
| City of Hendersonville Contractor Permit Bond | $10,000 - $50,000 | Starting from $100 |
| City of Hendersonville Electrical, Plumbing, or Gas/Mechanical Contractor Bond | $40,000 | Starting from $400 |
| City of Hendersonville Excavation and Pool Contractor Bond | $50,000 | Starting from $500 |
| Johnson City Building Contractor License Bond | $10,000 | Starting from $100 |
| Johnson City Electrical Contractor License Bond | $10,000 | Starting from $100 |
| Johnson City Fire Alarm System Bond | $10,000 | Starting from $100 |
| Johnson City Fire Sprinkler License Bond | $10,000 | Starting from $100 |
| Johnson City Fire Suppression Systems Bond | $10,000 | Starting from $100 |
| Johnson City Gas/Mechanical Contractor License Bond | $10,000 | Starting from $100 |
| Johnson City Plumbing Contractor License Bond | $10,000 | Starting from $100 |
| City of Kingsport Electrical Contractor Bond | $10,000 | Starting from $100 |
| City of Kingsport Gas and Mechanical Contractor Bond | $10,000 | Starting from $100 |
| City of Kingsport Plumbing Contractor Bond | $10,000 | Starting from $100 |
| Knox County Out-of-State Contractor Bond | $500-$10,000 | Starting from $100 |
| Knox County Out-of-State Contractor Bond | $10,001-$100,000 | Subject to underwriting |
| City of Knoxville Electrical Contractor Bond | $10,000 | Starting from $100 |
| City of Knoxville Gas Installation & Serviceman's Bond | $10,000 | Subject to underwriting |
| City of Knoxville Mechanical Contractor Bond | $10,000 | Starting from $100 |
| City of Knoxville Out-of-State Contractor Bond | $500-$25,000 | Starting from $100 |
| City of Knoxville Out-of-State Contractor Bond | $25,001-$100,000 | Subject to underwriting |
| City of Knoxville Plumbing Contractor Bond | $10,000 | Starting from $100 |
| City of Lebanon Gas Permit Bond | $10,000 | Starting from $100 |
| Memphis and Shelby County Contractor Bond | $25,000 | Starting from $250 |
| Memphis and Shelby County Backflow Prevention Device Tester Bond | $5,000 | Starting from $100 |
| City of Morristown Electrical Contractor Bond | $2,000 | Starting from $100 |
| City of Morristown Gas Contractor Bond | $5,000 | Starting from $100 |
| City of Morristown Plumbing Contractor Bond | $5,000 | Starting from $100 |
| Nashville-Davidson County General Contractor Permit Bond | $10,000 - $40,000 | Starting from $100 |
| Nashville-Davidson County Electrical, Gas/Mechanical, Plumbing, and Excavation Contractors Bond | $40,000 | Starting from $400 |
| Nashville-Davidson County Blasting Contractor Permit Bond | $10,000 | Starting from $100 |
| Nashville-Davidson County House Moving Contractor Permit Bond | $40,000 | Starting from $400 |
| City of Oak Hill Contractor Bond | $1,000-$100,000 | Starting from $100 |
Use our bond cost calculator to estimate your rate, or apply online for a free, no-obligation quote.
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Get a free exact quote Get another estimateContract Bonds in Tennessee
Tennessee contractors working on public or high-value private projects may also need contract bonds, such as bid, performance, or payment bonds.
Unlike license bonds, which cover general state compliance, contract bonds are project-specific and protect the project owner by ensuring the contractor meets all terms. These bonds are issued per project and remain valid only for their duration.
How to Get a Tennessee Contractor License Bond
Once you've confirmed all licensing requirements with your local jurisdiction and determined the bond type and amount you need, you're ready to get bonded.
At Bryant Surety Bonds, we’ve made the process quick, easy, and entirely online. Here’s how it works:
- Apply online: Complete a short application with your business details and required bond amount.
- Get your quote: We’ll send you a free, no-obligation quote, often on the same day.
- Receive your bond: After you approve the quote, we’ll issue your official bond certificate, ready to submit with your license application or renewal.
Tennessee contractor bonds must stay active to remain compliant. We’ll send timely renewal reminders so you’re always covered and in good standing.
FAQs
How long does it take to get bonded?
Many applicants receive their contractor bond on the same day they apply. If your application requires further review due to certain financial factors, it may take a few extra business days. Either way, our team works to get your bond issued as quickly as possible.
Can I get a Tennessee contractor license surety bond with bad credit?
Yes, having bad credit doesn’t automatically disqualify you from getting bonded. While you may pay a higher premium due to the increased risk for the surety company, you can still secure the bond you need to get licensed.
At Bryant Surety Bonds, our Bad Credit Program is tailored specifically for applicants with challenged credit.
What if someone files a claim against my bond?
If a claim is filed against your Tennessee contractor license bond, Bryant Surety Bonds will be here to support you every step of the way.
Generally, the surety company will first investigate to determine whether the claim is valid. Claims are usually upheld when a contractor fails to meet the terms of the bond, such as violating state regulations or breaching a contract.
If the claim is approved, the surety will compensate the claimant. However, as the bonded contractor, you’re required to repay the surety for any amount they cover on your behalf.
Additional Resources
- TN Department of Commerce & Insurance: Contractor License Application Requirements & Process
- TN Department of Commerce & Insurance: Contractors
