Tennessee Contractor License Bond
Bond Details
The required bond amount must be at least 50% of the monetary limit requested.
| Request Monetary Limit | Required Bond Amount (50%) | Estimated Starting Premium* |
| $50,000 | $25,000 | *$500 |
| $100,000 | $50,000 | *$1,000 |
| $200,000 | $100,000 | *$2,000 |
| $300,000 | $150,000 | *$3,000 |
| $400,000 | $200,000 | *$4,000 |
*Premiums are determined through underwriting and may vary based on credit, financial strength, and other factors.
Overview:
Beginning July 1, 2026, Tennessee contractors have a new way to satisfy the financial responsibility requirement for contractor licensing. Instead of submitting a CPA-reviewed or CPA-audited financial statement, eligible applicants and licensees may provide a Contractors' Surety Bond using the Tennessee Board for Licensing Contractors' approved bond form.
Principal: Contractor (You)
Obligee: Tennessee Board for Licensing Contractors
Surety: NNA Surety
Bond Amount: Minimum of 50% of your requested monetary limit
Bond Term: As required by the Tennessee Board
What Is a Tennessee Contractors' Surety Bond?
The Tennessee Contractors' Surety Bond is a financial guarantee that allows qualified contractors to satisfy the Board's financial responsibility requirement without submitting a CPA-reviewed or CPA-audited financial statement.
Effective July 1, 2026, contractors applying for or renewing a Tennessee contractor license may choose this bond option by submitting the Board-approved Contractors' Surety Bond form. The bond amount must be equal to at least 50% of the monetary limit requested.
How to Get Your Bond
- Complete our online quote request.
- Provide basic business and financial information.
- Our underwriting team reviews your application.
- Purchase your bond once approved.
- Submit the Board-approved Contractors' Surety Bond form with your application or renewal.
Frequently Asked Questions
Is this different from the existing Tennessee Contractor License Bond?
Yes. Beginning July 1, 2026, Tennessee introduced a new Contractors' Surety Bond option that contractors may use instead of submitting a CPA-reviewed or CPA-audited financial statement.
How is the bond amount determined?
The required bond amount must be at least 50% of the monetary limit requested.
Do I still need the Board-approved bond form?
Yes. Contractors using this option must submit the Board-approved Contractors' Surety Bond form.
Can NNA Surety help determine the correct bond amount?
Yes. Our surety specialists can help determine the appropriate bond amount and guide you through the process.