Tennessee is a growing state: many different industries require surety bonds to support the growth of an economy based on agriculture, textiles, and electricity generation.
A surety bond is a contract that guarantees you will fulfill your obligations and follow the rules of your industry. Depending on what type of surety bond you need, your obligations and duties will be different.
Short on time? Read our Surety Bond FAQ.
How to get a Surety Bond in Tennessee
Step #1: Apply for Tennessee surety bond
To get a Tennessee surety bond, people generally go to a surety bonding company. You are able to get a surety bond through a general insurance company, but choosing a surety bond company often means you can get better quotes.
Applying for your bond is easy and normally be done online.
Step #2: Evaluation and rates
After you apply for your bond, an underwriter will evaluate the risk of bonding you.
One of the main factors the underwriter will take into account is your credit score. Why? Because your credit score is a great example
of how you have repaid companies in the past.
Cost of a Tennessee Surety Bond
- Applicants with good credit can expect to pay 1-4% of their total bond amount.
- Applicants with bad credit will have to pay more, up to 15%.
The chart below shows examples of how much you might pay for your Tennessee bond.
Step #3: Pay for Tennessee bond
You will only need to pay one time for your bond. You won’t have to pay monthly, like a regular insurance policy.
You will only need to pay again for your bond if you choose to renew your bond after it expires. Generally, bonds are good for at least one year. Some bonds are good for many years.
Businesses That Require Surety Bonds in Tennessee
Every state has different bonding requirements for its industries, and Tennessee is no exception. If you’re operating a business in Tennessee and you’re in a position of financial or ethical responsibility, you may need to get a surety bond.
Diverse groups such as notaries, beauty pageant coordinators, collection agencies, pest control companies, and home improvement contractors all require surety bonds in Tennessee.
Getting a Tennessee surety bond can be expensive, but it doesn’t have to be. At Surety Solutions, our online Bond Cost Calculator lets you view quotes for your bond so you can compare prices before you buy.
Compare quotes for free: