Who requires it
Tennessee Board for Licensing Contractors
License & permit · Tennessee
Tennessee Contractors’ Surety Bond
Since July 1, 2026, Tennessee contractor applicants and licensees may file a Board-approved Contractors’ Surety Bond instead of a CPA financial statement. The amount must be at least half the monetary limit you request, stay in force while you rely on it, and keep the license valid only while the bond remains in force.
Common bond amount
≥ 50% of monetary limit
Statutory floor under § 62-6-111(b)(5) effective July 1, 2026—scales with the monetary limit you request; not a fixed $500,000 statewide amount.
How you file
File the Board-approved Contractors’ Surety Bond form
Renewal
Keep in force while you rely on it, or replace with a qualifying financial statement
Who requires it
Individuals and entities seeking or holding a Board for Licensing Contractors license who choose the statutory surety path in T.C.A. § 62-6-111(b)(5) instead of submitting the otherwise-required financial statement—for initial licensure, a monetary-limit increase, or renewal when Board materials allow that election. This is not the ContBLC $500,000 / $1,000,000 Contractor’s License Bond used only instead of a Guaranty Agreement, and it is not the $10,000 home improvement financial-responsibility proof.
How much is required
Pub. Ch. 1039 amended § 62-6-111 so the surety bond must equal at least fifty percent (50%) of the monetary limitation requested. Example: a $1,000,000 monetary limit requires at least a $500,000 Contractors’ Surety Bond. The Board’s July 2026 notice matches that floor and requires the Board-approved Contractors’ Surety Bond form. The bond stays in force while you rely on it; you may later switch to a qualifying financial statement under § 62-6-111(b)(3) or (b)(4). The surety company is not required to complete the contractor’s construction contracts.
How to get and file it
Decide the monetary limit you will request, size the bond at least to 50% of that figure, and have a Tennessee-authorized surety complete the Board-approved Contractors’ Surety Bond form in the exact license name. File proof with the CORE application, monetary-limit change, or renewal as the Board directs. Do not substitute the ContBLC Guaranty Agreement indemnity bond form for this statutory path. Keep the bond in force for as long as the license depends on it. If the bond ceases to be in effect and you have not filed a qualifying financial statement, statute treats the contractor’s license as invalid. At renewal, either maintain an effective Contractors’ Surety Bond that meets § 62-6-111(b)(5) or submit a financial statement that meets the Board’s current rules. Confirm the live Board form and Rule 0680-01-.32 instructions before each filing.
Cost note
Fifty percent of your monetary limit is the required bond amount, not the premium you pay. See bond amount vs premium. Bond amount vs premium →
Requirement checklist
- Minimum amount
- At least 50% of the requested monetary limitation
- Legal role
- Instead of the CPA financial statement for initial license, limit increase, or renewal when elected
- Form
- Board-approved Contractors’ Surety Bond form (not the ContBLC Guaranty Agreement indemnity bond)
- Lapse
- License becomes invalid if the bond ceases to be in effect without a qualifying financial statement on file
Official sources
Related resources
Frequently asked questions
Is the bond always $500,000?
No. The amount must be at least half of the monetary limit you request. A $500,000 bond only fits when your limit is $1,000,000 or less and you write at least that half; higher limits need a larger bond.
Does this replace my financial statement?
Yes for this path. Beginning July 1, 2026, § 62-6-111 lets you file the Contractors’ Surety Bond instead of a CPA financial statement while the bond stays in force. That is different from the ContBLC indemnity bond, which does not waive the financial statement.
Is this the same as the $500,000 / $1,000,000 Contractor’s License Bond?
No. That ContBLC bond is an indemnity used instead of a Guaranty Agreement while you still file financials. This Contractors’ Surety Bond is the Pub. Ch. 1039 path that can stand in for the financial statement at ≥50% of your monetary limit.
Related Tennessee bond guides
Contractor’s License Indemnity Bond
$500,000 / $1,000,000
The Board’s ContBLC Contractor’s License Bond is a fixed-amount indemnity some contractors use instead of a Guaranty Agreement when supporting a monetary limit. Amounts the Board will consider are typically $500,000 or $1,000,000. It does not replace the CPA financial statement and is not the July 2026 Contractors’ Surety Bond that can stand in for financials.
Home Improvement Contractor Bond
$10,000
In counties that adopted Tennessee’s home improvement law, remodelers working between $3,000 and $24,999 must show $10,000 of financial responsibility to the Board for Licensing Contractors. A surety bond is the usual path; cash, property, or an irrevocable letter of credit can also satisfy the rule.
Surety basics (not repeated here)
Universal surety concepts explained once—linked here instead of repeated on every state or bond page.
Continue with a Tennessee application
Tennessee will be preselected. Choose your bond type in the application—we confirm the correct product against your agency form before anything is issued.
Last verified 2026-08-10. This guide is based on verified educational content and official sources.
Agents Ready to Help
Share your agency checklist or bond form and we will confirm the agency, amount, and filing steps before issuing.
Talk to the pro →