Tennessee Contractor’s License Bond (Monetary-Limit Assurance)
What it is & who requires it
Tennessee-licensed contractors (BC, BC-A, etc.) who use a surety bond, in lieu of a Guaranty Agreement, to support their license monetary limit when financial statements / line of credit fall short.
Obligee: Tennessee Board for Licensing Contractors (Dept. of Commerce & Insurance). Citation: Board for Licensing Contractors 'Guaranty Agreement and Bond Information' (Indemnities); Board Rule 0680-01-.13 (monetary limit).
Bond amount
Conditional Contractor’s License Bond used in lieu of a Guaranty Agreement to support the license monetary limit: $500,000 (for monetary limits less than $1,500,000) or $1,000,000 (for limits exceeding $1,500,000). Required only when the contractor cannot meet the desired limit through CPA financial statements, a line of credit, or a guaranty agreement.
How to get it
This bond issues online — get bonded through our portal, usually in a single sitting once you confirm the bond, amount, and obligee.
Term & renewal
Term: Tied to the license; maintained as long as it supports the monetary limit
Renewal: With license renewal (financial assurance re-tested at renewal)
Filing
Filed with the Tennessee Board for Licensing Contractors to support your license monetary limit, used in lieu of a Guaranty Agreement when CPA financial statements, a line of credit, or a guaranty agreement fall short; it is re-tested at license renewal. The surety must hold an A.M. Best rating, with a power of attorney attached. Required under Board Rule 0680-01-.13 and the Board’s Guaranty Agreement and Bond Information.
Source
Verified against the obligee source (last checked 2026-06-06).
Related Tennessee bonds
Frequently asked questions
- Who requires the Tennessee Contractor’s License Bond (Monetary-Limit Assurance)?
- It’s required by Tennessee Board for Licensing Contractors (Dept. of Commerce & Insurance) (Board for Licensing Contractors 'Guaranty Agreement and Bond Information' (Indemnities); Board Rule 0680-01-.13 (monetary limit)). Tennessee-licensed contractors (BC, BC-A, etc.) who use a surety bond, in lieu of a Guaranty Agreement, to support their license monetary limit when financial statements / line of credit fall short.
- How much is the Tennessee Contractor’s License Bond (Monetary-Limit Assurance)?
- Conditional Contractor’s License Bond used in lieu of a Guaranty Agreement to support the license monetary limit: $500,000 (for monetary limits less than $1,500,000) or $1,000,000 (for limits exceeding $1,500,000). Required only when the contractor cannot meet the desired limit through CPA financial statements, a line of credit, or a guaranty agreement.
- How do I get the Tennessee Contractor’s License Bond (Monetary-Limit Assurance)?
- This bond issues online — get bonded through our portal, usually in a single sitting once you confirm the bond, amount, and obligee.
- What is the term?
- Tied to the license; maintained as long as it supports the monetary limit Renewal: With license renewal (financial assurance re-tested at renewal)
- Is this bond insurance for me?
- No. It protects the obligee and the public — not you. If a valid claim is paid, you repay the surety.
- How is this requirement verified?
- We verify it against the obligee’s primary source (last checked 2026-06-06); the source link is on this page.
