Wexford Bonds

Tennessee Surety Bonds

Contractor License & Permit Bonds in Tennessee

Find the exact license, permit, right-of-way, or public-works bond your Tennessee obligee requires — by city, county, and the state. License and permit bonds issue online.

Get Your Bond Online Call 317-942-0549
Wexford Bonds logo

How contractor bonding works in Tennessee

Tennessee licenses contractors statewide — financial statements first, with a conditional surety-bond alternative

Tennessee is one of the few states that licenses contractors statewide. The Board for Licensing Contractors sets each contractor’s monetary limit from reviewed financial statements — net worth and working capital — so the license is financial-statement-first, not a flat bond. But when those financials fall short of the limit you need, the Board accepts a Contractor’s License Bond — $500,000 for a monetary limit under $1,500,000, or $1,000,000 above it — in lieu of a guaranty agreement. On top of that, the surety you actually post in Tennessee comes from the Board’s Home Improvement program, the Transportation Department, or the city, county, or utility you work in.

The one state Board bond is the Home Improvement bond

The single bond the Board for Licensing Contractors requires is the Home Improvement Contractor bond — $10,000, for residential work between $3,000 and $24,999, and only in nine counties: Bradley, Davidson, Hamilton, Haywood, Knox, Marion, Robertson, Rutherford, and Shelby. Separately, the Tennessee Department of Transportation requires a highway right-of-way bond at 110% of the estimated construction cost, or $5,000, whichever is greater.

The bond you post is usually local — city, county, or utility

Most Tennessee bonds are set by the obligee whose permit you pull. Nashville requires a single permit bond of $10,000 under $25,000 of work and $40,000 at or above it; Memphis and Shelby County require a $25,000 building-mover and demolition bond; Chattanooga requires a $25,000 street-obstruction and excavation bond; and Knox County and Murfreesboro set their right-of-way bonds per project. The utility layer matters too — Memphis Light, Gas and Water requires a $200,000 pole-attachment bond and a developer underground-facilities bond set to each project’s cost.

Public works follow a 25-percent floor — but practice runs higher

Tennessee’s Little Miller Act (TCA 12-4-201) requires a bond of no less than 25% of the contract price on public-works contracts over $100,000, protecting payment for the labor and materials of the contractor and all subcontractors. The 25% is only a statutory floor — in practice obligees frequently require the bond at the full contract value. These are underwritten — see the public-works pages in the directory below.

Tennessee bonds we write

Contractor License & Permit Bonds

Statewide

County

City

Bid Bonds

Statewide

Performance & Payment Bonds

Statewide

City

Special District

Underwritten bonds in Tennessee

Bid, performance, and payment bonds are individually underwritten — request a quote rather than the instant portal:

Tennessee surety bond FAQ

Does Tennessee require a state contractor license bond?
Tennessee licenses contractors statewide on reviewed financial statements — net worth and working capital. If those fall short of your monetary limit, the Board for Licensing Contractors accepts a Contractor’s License Bond ($500,000 or $1,000,000, by limit) in lieu of a guaranty agreement. The Board also requires the Home Improvement Contractor bond in nine counties.
Who needs the Tennessee Home Improvement bond?
Home improvement contractors doing residential work between $3,000 and $24,999 in nine counties — Bradley, Davidson, Hamilton, Haywood, Knox, Marion, Robertson, Rutherford, and Shelby — post a $10,000 bond with the Board for Licensing Contractors.
What bond do I need to pull a permit or cut a street in Tennessee?
A local one. Nashville requires a $10,000 or $40,000 permit bond by project value; Chattanooga requires a $25,000 street-cut bond; Johnson City requires a $10,000 right-of-way bond; and Knox County and Murfreesboro set theirs per project.
Are Tennessee public-works bonds different?
Yes. Tennessee’s Little Miller Act (TCA 12-4-201) sets a floor of 25% of the contract price on public works over $100,000, though obligees often require the full contract value. These are underwritten.
How fast can I get a Tennessee license or permit bond?
Home improvement, contractor permit, and right-of-way bonds issue online, usually in one sitting. Public-works bonds are underwritten and start with a quote request.
Who is Wexford Bonds?
Wexford Bonds is the surety bond brand of Wexford Insurance, LLC, licensed in 48 states. We write Tennessee home improvement, contractor permit, right-of-way, and public-works bonds.

Nate Jones, CPCU · Founder, Wexford Bonds

Nate Jones is a CPCU-designated surety bond producer and the founder of Wexford Insurance, LLC and Wexford Bonds. He places bonds through a panel of 10 sureties across 48 U.S. states. Call 317-942-0549 or email info@wexfordbonds.com.

Last updated · Reviewed by Nate Jones, CPCU · Contact a producer

Get bonded in Tennessee

Find your bond above, or get a license, permit, or bid bond online right now.

Get Your Bond Online