Contractors who do not meet the minimum financial requirements (working capital and net worth) for their desired monetary limit, or those whose parent company cannot provide a Guaranty Agreement. Required when: Application for a new contractor license or renewal of an existing license when the applicant's financial st…
Overview
What it is.
Contractors who do not meet the minimum financial requirements (working capital and net worth) for their desired monetary limit, or those whose parent company cannot provide a Guaranty Agreement. Required when: Application for a new contractor license or renewal of an existing license when the applicant's financial st…
Who usually needs it
Contractors who do not meet the minimum financial requirements (working capital and net worth) for their desired monetary limit, or those whose parent company cannot provide a Guaranty Agreement.
Pricing & timing
What to expect.
Generic pricing
License bonds are required by state and local governments to ensure compliance with industry regulations. Typical Pricing:. • Small bonds (under $25,000): Typically $100–$250 per year (flat fee). • Larger license bonds: Commonly around 1–5% of the bond amount annually. • Credit impact: Good credit: starting around 1–2% · Average credit: typically 2–4% · Credit challenges: often 4–5% or higher. Same-day approval is typical for many common license bonds. Some license bonds may price higher de…
Typical timeframe
Issuance timeframe varies by bond type and underwriting
Application
What to do next.
Tell us the bond name, state, and amount on your form.
Share business and applicant info so the team can quote it.
Sign and pay; we issue the bond and send you the documents.
Keep your effective date and renewal date on file with us.
Start the application.
You are on the exact bond page. The next step is to start the quick application.
StateTNBond amount$500,000 for license monetary limits less than $3,000,000; $1,000,000 for licen…Term lengthContinuousObligeeTennessee Board for Licensing ContractorsRenewalThe bond must remain active throughout the entire licensing period; failure to maintain the bond results in the license becoming invalid.Bond classLicense BondCategoryConstructionBondContractor's License BondStatutory referenceT.C.A. § 62-6-111; Rule 0680-01-.13JurisdictionState
