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Tennessee Contractor Bonding Requirements

Tennessee has two distinct licensing systems: Home Improvement Contractors ($3K-$25K) require $10,000 bonds. Contractor Licenses ($25K+) use financial statements - bonds optional. Understanding which license you need is critical for Tennessee compliance.

HOME IMPROVEMENT BOND - $10,000 REQUIRED

Projects $3K-$25K: $10,000 bond mandatory • Contractor Licenses ($25K+): Financial statement based

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Tennessee Legal Requirements & Official Resources

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Legal Authority

Governing Statute

Tennessee Code Annotated Title 62, Chapter 6

View Tennessee Code Annotated

Bond Requirements

Home Improvement ($3,000 to $24,999)
• $10,000 bond REQUIRED
Contractor License ($25,000 or more)
• Financial statement based (bond NOT required)
• Optional: Optional ($500K-$1M for financial statement supplement)

All bonds issued through U.S. Treasury-certified carriers.

Board Contact Information

Tennessee Board of Licensing Contractors

Phone: (615) 741-8307
Address: 500 James Robertson Parkway, Nashville, TN 37243
Visit Board Official Site

Processing Times

• Initial: 4-8 weeks
• Renewal: 2-4 weeks

Tennessee License Types & Bond Requirements

Two distinct licensing paths with different bond requirements

Home Improvement
$10,000 REQUIRED
Home Improvement Contractor

Scope: $3,000 to $24,999 projects

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Unlimited
Financial statement based
Unlimited Contractor (over $3M)

Scope: No project limit

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Specialty
Financial statement based
Specialty Contractor

Scope: Specific trades

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Limited Residential
Financial statement based
Limited Residential (BC-A/r)

Scope: Up to $125,000 residential

Get Quote
Home Improvement Contractor Requirements
Projects $3,000 to $24,999
$10,000
Bond REQUIRED
Projects between $3,000 and $24,999
Tennessee Home Improvement Contractor License required
$10,000 surety bond REQUIRED (or cash/property bond/ILOC)
General liability insurance
Workers compensation insurance or exemption
Does NOT cover electrical, gas, mechanical, HVAC, or plumbing
Contractor License Requirements
Projects $25,000 and above
Financial Statement Based
Bond NOT required (optional $500K-$1M)
Projects valued at $25,000 or more
Tennessee Contractor License required
Bond NOT required for licensing
Financial statement requirements (net worth/working capital)
Optional bond ($500K-$1M) to supplement financial statement
General liability insurance
Workers compensation insurance or exemption
Trade exam and business/law exam required
Get Your Tennessee Home Improvement Bond
Required for projects $3,000-$24,999
Get $10,000 Home Improvement Bond - Starting at $100/year

Treasury-certified carriers • Instant approval available

Major Tennessee Cities - Local Requirements

City-specific characteristics and additional requirements

Nashville

Special Requirements:

Metro business license, codes department permits

Market Focus:

Commercial development, residential growth, music industry facilities

Memphis

Special Requirements:

City business license, building permits

Market Focus:

Industrial construction, logistics facilities, historic renovation

Knoxville

Special Requirements:

City business license, MPC permits

Market Focus:

University facilities, residential development, healthcare construction

Chattanooga

Special Requirements:

City business license, RDA permits

Market Focus:

Technology sector, tourism infrastructure, riverfront development

Get Your Tennessee Home Improvement Bond

$10,000 bond required for $3K-$25K projects

📋 Get Your Tennessee Contractor Bond Quote

Fast approval • Competitive rates

✓Fast approval•✓A- rated carriers•✓All 50 states
Tennessee Contractor Bonding FAQs
Understanding Tennessee's two-tier licensing system

Serving Construction Professionals Throughout Tennessee

We serve all major cities as well as smaller towns around Tennessee

Nashville
Memphis
Knoxville
Chattanooga
Clarksville
Murfreesboro
Franklin
Jackson
Johnson City
Bartlett

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📋 Get Your Tennessee Contractor Bond Quote

Fast approval • Competitive rates

✓Fast approval•✓A- rated carriers•✓All 50 states