Tennessee Contractor License Bond - $1,000,000

Bond Details

Tennessee Contractor License Bond – $1,000,000 bond - $10,000 per year

Overview

Contractors may use a surety bond in lieu of a guaranty agreement or line of credit to qualify for a Tennessee contractor license. A Tennessee contractor license bond helps you meet the financial requirements for a license with a monetary limit exceeding $1,500,000.

Principal: Contractor (you)
Obligee: Tennessee Department of Commerce and Insurance
Surety: NNA Surety
Bond Amount: $1,000,000
Bond Cost: $10,000
Bond Term: 1 year

How a Tennessee Contractor License Bond Works

A contractor license bond may be accepted when your working capital or net worth cannot be supplemented or you choose not to supplement with a guaranty agreement or bond line of credit.

The difference between a guaranty agreement and a line of credit is that the guaranty agreement involves a third party (guarantor) pledging financial resources on your behalf whereas a line of credit provides you access to surety credit up to a certain limit.

The contractor license bond is limited to 50% of the guarantor's total working capital and net worth according to their supplemental financial statement.

Let NNA Surety Help You

Becoming a licensed contractor in Tennessee is easier when you work with NNA Surety. Complete this form with your information to secure the indemnity bond today.

When applying for your Tennessee contractor license bond, NNA Surety will check your credit history and assess your financials. Underwriting may be required based on this review. For more information about our process, call us.