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Tennessee home improvement contractors and contract security companies will need to adhere to new bonding requirements following the passage of SB 1188.
Tennessee home improvement contractors are required to obtain a license through the Board for Licensing Contractors in several counties when the cost of the project is between $3,000 and $24,999. Counties that have adopted the requirement are as follows:
- Bradley
- Davidson
- Haywood
- Hamilton
- Knox
- Marion
- Robertson
- Rutherford
- Shelby
Under current law, Tennessee home improvement contractors have the option of providing a letter of credit, cash bond, property bond, or surety bond for $10,000 as a form of financial security. SB 1188 eliminates the option for home improvement contractors to post a cash or property bond, meaning only a surety bond or letter of credit in the amount of $10,000 will be accepted. Tennessee home improvement contractor applicants should note that the license does not cover electrical, plumbing, or HVAC work. Home improvement contractors should be familiar with their licensing requirements and all regulations set forth by the state of Tennessee.
SB 1188 also contains a provision for contract security companies in the state. Companies will need to obtain a surety bond when requesting a special event permit and hiring temporary security guards for the event. Temporary security guards are those that are not registered with the Department of Commerce & Insurance as employees of the contract security company. The amount of the surety bond will be determined at the time of permit application, and benefits anyone damaged by a temporary security guard acting under the special event permit.
To become licensed as a contract security company, applicants must meet criteria that includes the following:
- At least 21 years old
- U.S. citizen or resident alien
- Of good moral character
- Satisfying the experience or examination requirement
- Provide three credit references with whom they’ve established a credit record
Consult Tennessee’s full list of contract security company licensing requirements before submitting an application.
Ready to get a Tennessee surety bond? Give Single Source Insurance a call today!