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How Much Does a Tennessee Contractor License Bond Cost?
A Tennessee contractor license bond costs between $100 and $100,000 depending on the trade and location. A Tennessee general contractor bond requirement may be up to $1 million, and a home improvement contractor bond amount is $10,000.
Instead of paying the full bond amount, you can purchase the required bond from a licensed Tennessee surety company. The bond cost typically ranges between 1% and 10% of the bond amount. Factors like your financial strength, business experience, and credit scores influence the premium rate.
If you are a well-qualified applicant with a 700 or higher credit score, your premium will range from 1% to 3% of the bond amount. If you have a credit score of 600 to 699, the rate will be from 3% to 5%. A score of 599 or lower yields a premium rate of 5% to 10%.
Surety Bond Cost Based on Credit Score |
||||
Surety Bond Name |
Surety Bond Amount |
Over 700 |
Between 600 - 699 |
Below 599 |
Tennessee Contractor License Bond |
$500,000 |
$5,000 - $15,000 |
$15,000 - $25,000 |
$25,000 - $50,000 |
Tennessee Contractor License Bond |
$1,000,000 |
$10,000 - $30,000 |
$30,000 - $50,000 |
$50,000 - $100,000 |
Tennessee Home Improvement Contractor Bond |
$10,000 |
$100 - $300 |
$300 - $500 |
$500 - $1,000 |
Tennessee State Fire Marshal’s Office Fire Protection Sprinkler System Contractor Bond |
$25,000 |
$250 - $750 |
$750 - $1,250 |
$1,250 - $2,500 |
Tennessee State Fire Marshal’s Office Installer of Modular Building Units Bond |
$10,000 |
$100 - $300 |
$300 - $500 |
$500 - $1,000 |
Tennessee Fire Alarm Contractor Bond |
$25,000 |
$250 - $750 |
$750 - $1,250 |
$1,250 - $2,500 |
How to Get a Tennessee Contractor License Bond
1. Determine the Surety Bond You Need
The Tennessee Department of Commerce and Insurance – Board for Licensing Contractors is your source for full details about the contractor license and bond requirements.
The Tennessee Fire Marshal’s Office can provide additional information about licensing and bonding for sprinkler system and fire alarm contractors. Additional links for local licensing authorities are below.
Our new client, Rich, contacted us recently about buying a home improvement contractor bond. After learning that we provide bonds to applicants with lower credit scores, he applied online and had a quote from us instantly. Then, he paid the premium online and got the bond in his inbox.
2. Apply for Your Bond
After determining what type of contractor bond you need and the bond amount, you can complete the short online application. We bond more than 99% of our applicants with our straightforward process.
3. Get a Quote
After submitting your online bond application form, you will receive a no-obligation quote immediately. While most applicants receive an instant quote, quotes for more complicated situations require up to 48 hours.
4. Buy Your Bond
We make it easy for you to finalize your bond purchase with our online payment portal. Simply make your premium payment when you are ready, and we will email you bond to you quickly. If requested, we can mail the document to you as well.
Our dedicated bond experts can help you get the contractor bond you need. If you have questions or need assistance, we are available to assist you. Contact us or call us at (877) 514-5146.
Contractors License Bond Requirements in Tennessee
The Tennessee Department of Commerce and Insurance Board for Licensing Contractors is the authority for state-level contractor licensing and bond requirements. With a limit less than $1.5 million, the contractor license bond is $500,000. If the limit is greater than $1.5 million, the bond amount is $1 million.
The Tennessee Fire Marshal’s Office is the authority for several bonds. These include the fire protection sprinkler system contractor bond, the installer of modular building units bond and the fire alarm contractor bond.
The obligee for these bonds is the governing authority. The bond must be renewed and remain effective to maintain the license. Our bond experts will reach out to you at that time with renewal instructions.
Besides state requirements, a several Tennessee cities also impose their own contractor regulations, including:
Surety Bond |
Bond Amount |
Premium |
$500,000 - $1,000,000 |
From $5,000 |
|
$10,000 |
From $100 |
|
Tennessee State Fire Marshal’s Office Fire Protection Sprinkler System Contractor Bond |
$25,000 |
From $250 |
Tennessee State Fire Marshal’s Office Installer of Modular Building Units Bond |
$10,000 |
From $100 |
Tennessee Fire Alarm Contractor Bond |
$25,000 |
From $250 |
$1,000 - $100,000 |
From $100 |
|
City of Franklin Contractor Bond |
$10,000 |
From $100 |
City of Gallatin Contractor Bond |
$10,000 - $50,000 |
From $100 |
City of Goodlettsville Electrical, Plumbing, Gas, or Excavation Contractor Bond |
$40,000 |
From $400 |
City of Goodlettsville General Contractor Bond |
$10,000 - $50,000 |
From $100 |
City of Hendersonville Contractor Bond |
$10,000 - $50,000 |
From $100 |
City of Johnson City Building License Bond |
$10,000 |
From $100 |
City of Johnson City Plumbing License Bond |
$10,000 |
From $100 |
City of Kingsport Gas and Mechanical Contractor Bond |
$10,000 |
From $100 |
City of Kingsport Electrical Contractor Bond |
$10,000 |
From $100 |
City of Kingsport Plumbing Contractor Bond |
$10,000 |
From $100 |
City of Knoxville Electrical Contractor Bond |
$10,000 |
From $100 |
City of Knoxville Mechanical Contractor Bond |
$10,000 |
From $100 |
$500 - $100,000 |
From $100 |
|
City of Knoxville Plumbing Contractor Bond |
$10,000 |
From $100 |
$2,000 |
From $100 |
|
City of Morristown Gas Contractor Bond |
$5,000 |
From $100 |
City of Morristown Plumbing Contractor Bond |
$5,000 |
From $100 |
$40,000 |
From $400 |
|
$10,000 |
From $100 |
|
$500 - $100,000 |
From $100 |
|
$25,000 |
From $250 |
|
City of Chattanooga Street Obstruction and Excavation Bond |
$25,000 |
From $250 |
Memphis and Shelby County Backflow Prevention Device Tester Bond |
$5,000 |
From $100 |
City of Knoxville Gas Installation & Serviceman's Bond |
$10,000 |
From $100 |
City of Johnson City Gas/Mechanical Contractor License Bond |
$10,000 |
From $100 |
City of Franklin Contractor Security Agreement Bond |
$10,000 |
From $100 |
$10,000 - $50,000 |
From $100 |
|
City of Johnson Electrical Contractor License Bond |
$10,000 |
From $100 |
City of Oak Hill Contractor Bond |
$1,000 - $100,000 |
From $100 |
$10,000 |
From $100 |
How to Get Your Tennessee Contractor License
After learning how to get a Tennessee contractors license, you can complete the easy steps and start working. The documentation required to obtain a license varies by license type and location. For a Tennessee contractor license, you will need:
- Apply online
- Surety bond
- Experience List or resume (all required application forms)
- Contractor’s Affidavit
- References
- Power of Attorney for Qualifying Agent
- License Verification, if applicable
- Workers’ Compensation Exemption
- Citizenship Eligibility
- Financial Statement
- Felony Conviction Disclosure
- Scores for required exams
- Certification of Insurance for workers’ comp and liability insurance
- Corporate documents filed with the Secretary of State
- Letters of explanation, if applicable
- Application Fee - $250
For more information and to apply for a license, contact:
Department of Commerce and Insurance – Board for Licensing Contractors
500 James Robertson Pkwy
Nashville, TN 37243-0565
Phone: (615) 741-2241
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What Our Clients Have To Say?
Quick response times and turn around for issuing bonds. Great customer service and very knowledgeable. We have used Lance Surety multiple times and have never been disappointed. Highly recommend them and Collette!
Long story short, these guys cut through the B.S. and get the job done. Responsiveness, excellent! Communication, excellent! Respect for their industry partners, excellent! John, Collette, Ryan, you're all-stars! Thank you!
We decided for Lance Surety Bond's quote for 2 reasons; Price and Customer Service. Our Representative Ryan was just SUPERB!! [...] I highly recommend Lance Surety Bond for all your Bonding needs! I'll definitely come back for all of mine. :-) Thanks Ryan!
Quick response times and turn around for issuing bonds. Great customer service and very knowledgeable. We have used Lance Surety multiple times and have never been disappointed. Highly recommend them and Collette!
Long story short, these guys cut through the B.S. and get the job done. Responsiveness, excellent! Communication, excellent! Respect for their industry partners, excellent! John, Collette, Ryan, you're all-stars! Thank you!
We decided for Lance Surety Bond's quote for 2 reasons; Price and Customer Service. Our Representative Ryan was just SUPERB!! [...] I highly recommend Lance Surety Bond for all your Bonding needs! I'll definitely come back for all of mine. :-) Thanks Ryan!