Board for Licensing Contractors work now splits into three customer-facing tracks. Since July 1, 2026, Pub. Ch. 1039 lets contractors post a Board-approved Contractors’ Surety Bond of at least half their monetary limit instead of a CPA financial statement. Separately, ContBLC materials still describe a fixed $500,000 / $1,000,000 Contractor’s License Bond used only instead of a Guaranty Agreement while financials remain on file. Home improvement licenses in adopting counties keep a fixed $10,000 financial-responsibility proof under Rule 0680-07-.13. Motor vehicle dealers file Form IN-1316 at $50,000 or more with the Motor Vehicle Commission. Collection service agencies bond on an employee-count schedule. Limited licensed electricians and plumbers, city permit bonds, and job bid, performance, or payment bonds sit outside this hub.
Tennessee · Surety Bond Resource Center
Tennessee surety bonds
Tennessee license bonding spans several agencies. Since July 1, 2026, contractors may file a Board Contractors’ Surety Bond at least equal to half their monetary limit instead of a CPA financial statement. A separate ContBLC Contractor’s License Bond still exists only as a Guaranty Agreement substitute at $500,000 or $1,000,000. Home improvement contractors in adopting counties show $10,000 financial responsibility. Motor vehicle dealers post at least $50,000 with the Motor Vehicle Commission. Collection service agencies use an employee-count bond or certificate of deposit.
Tennessee at a glance
- Contractors’ Surety Bond
- ≥ 50% of limit
- ContBLC indemnity bond
- $500k / $1M
- Home improvement (adopting counties)
- $10,000
Pub. Ch. 1039 / § 62-6-111 path instead of a financial statement (eff. July 1, 2026).
In lieu of Guaranty Agreement only—does not replace the financial statement.
Surety, cash, property, or letter of credit under Rule 0680-07-.13.
How it works in this state
How Tennessee bonding is organized
Tennessee bond directory
Find your bond requirement
These guides cover license and permit bonds with verified educational content. Your agency notice or application checklist is always the final authority.
- Home Improvement Contractor BondLicense & permitTennessee Board for Licensing Contractors — Home Improvement$10,000Surety bond, or cash / property / letter of credit, filed with the BoardTwo-year license; keep financial-responsibility proof on file; one-year hold after the license ends
- Contractors’ Surety BondLicense & permitTennessee Board for Licensing Contractors≥ 50% of monetary limitFile the Board-approved Contractors’ Surety Bond formKeep in force while you rely on it, or replace with a qualifying financial statement
- Contractor’s License Indemnity BondLicense & permitTennessee Board for Licensing Contractors$500,000 / $1,000,000File the ContBLC bond form instead of a Guaranty AgreementAlign with the two-year license; replace the indemnity when still required
- Motor Vehicle Dealer BondAuto dealerTennessee Motor Vehicle Commission$50,000File Form IN-1316 with the Motor Vehicle CommissionShow a qualifying bond at each license or renewal; continue with an updated bond as needed
- Collection Service BondFinancial / collectionTennessee Collection Service Board$15,000–$25,000File a surety bond payable to the State, or assign a matching certificate of depositKeep in force during licensure; CORE Surety Bond Attachment for renewals
Who sets the requirement?
Tennessee licensing agencies
Each agency below sets its own bond requirement. Open the related guide for amounts and filing steps.
Tennessee Board for Licensing Contractors
Licenses contractors and home improvement contractors; receives Contractors’ Surety Bonds, ContBLC indemnity bonds, and home improvement financial-responsibility proofs.
Open related guide →Tennessee Motor Vehicle Commission
Licenses motor vehicle dealers and related credentials; receives Form IN-1316 dealer bonds.
Open related guide →Tennessee Collection Service Board
Licenses collection service agencies; receives employee-tier bonds or certificate-of-deposit assignments.
Open related guide →Before you apply
Confirm these details from the agency notice
Bring these five items when you request a bond. For the full checklist, see how to read a bond requirement.
- 1
Who requires it
Confirm whether you need the Contractors’ Surety Bond (instead of financials), a ContBLC indemnity bond, home improvement financial-responsibility proof, a Motor Vehicle Commission dealer bond, a collection service bond, or only a local permit bond.
- 2
Bond title or form
Use the Board-approved Contractors’ Surety Bond form for the § 62-6-111 path; ContBLC indemnity uses the ContBLC bond form; dealers use IN-1316.
- 3
Required amount
Contractors’ Surety Bond ≥50% of monetary limit; ContBLC indemnity $500,000 or $1,000,000; home improvement $10,000; dealers ≥$50,000; collection $15,000 / $20,000 / $25,000.
- 4
License / business identifiers
Match the exact legal name on CORE and physical address for dealers. Keep liability, workers’ compensation, and trust-account proofs current where required.
- 5
Term / continuation
Keep any Contractors’ Surety Bond in force while you rely on it; dealer bonds track the license term; collection bonds must stay active for the full license period.
Learn more about surety bonds
Universal surety concepts explained once—linked here instead of repeated on every state or bond page.
Frequently asked questions
Can a Tennessee contractor skip the financial statement with a bond?
Yes beginning July 1, 2026. Pub. Ch. 1039 / T.C.A. § 62-6-111 lets you file a Board-approved Contractors’ Surety Bond of at least 50% of your monetary limit instead of a CPA financial statement. That is not the ContBLC $500,000 / $1,000,000 indemnity bond.
Do I need a home improvement bond outside Shelby or Davidson County?
Only if you work in a county that adopted the home improvement law. The Board’s home improvement page lists the current adopting counties. Elsewhere, that $10,000 credential may not apply.
Are electrical or plumbing licenses bonded at the state level?
Limited licensed electrician and plumber programs are separate credentials. This hub does not treat them as statewide license bonds; local governments may still require their own permit bonds.
Start your Tennessee bond application
Tennessee will be preselected in the application. Choose the bond type on the next step—we verify the current agency form before anything is issued.
Last verified 2026-08-10. Official sources are retained with this guide and checked before publication.
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