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Surety Bonds in Tennessee

With almost seven million residents in Tennessee, there are plenty of people across the state who have or need surety bonds. They are a common requirement and an easy one to fulfill! This page will outline everything you need to know about Tennessee surety bonds.

How Does a Tennessee Surety Bond Work?

There are dozens of different types of surety bonds, each with specific rules and requirements, but all surety bonds work in basically the same way. The first thing you should know is who's involved in a surety bond agreement:

• Principal – The person required to get a surety bond. The principal must also pay for claims filed against the bond by the obligee.
• Obligee – The person who requires the bond. If the requirements stated on the bond aren't met, the obligee may file a claim for damages with the surety.
• Surety – The company that issues and backs the bond. The surety guarantees payment to the obligee for any valid claim. The principal, who accepts liability for all claims, must pay that amount back to the surety with interest and feeds added.

Surety bonds are basically a way to hold one party accountable for damages they cause to another party. People manage risk to themselves and their business with surety bonds. Since the principal has to pay for claims, that person has a powerful incentive to avoid any misconduct that could cause claims. And since the surety guarantees payment for valid claims, the obligee always has a way to get compensation for damages.

Tennessee Surety Bonds Types

All the various surety bonds someone in the Volunteer State may need fall into one of these four categories:

• License Bond – A surety bond you need to obtain a professional or business license.
• Contract Bond – A surety bond required before finalizing a contract – common in the construction industry.
• Court Bond – A surety bond that a judge requires a plaintiff or defendant to have before moving forward with court proceedings.
• Fidelity Bond – A surety bond that a business voluntarily pays for to protect itself and its customers from employee misconduct.

Who Needs a Tennessee Surety Bond?

Tens of thousands of people across Tennessee either need a surety bond or have one already. That list includes many business owners and career professionals. It also includes most of the contractors and construction companies across the state. Even some individuals need surety bonds to help them establish trust with another entity. In all cases, it's important to obtain a surety bond sooner rather than later, because waiting will only delay an important process from proceeding. Take care of any Tennessee surety bond requirement quickly and easily by contacting Viking Bond Service.

How to Get a Surety Bond in Tennessee?

Some types of surety bonds involve an in-depth application process while others are quite easy to apply for. Either way, working with the right surety agency can make the process more simple and streamlined. Here are some steps that all bond seekers should be prepared for.

• Complete a bond application
• Submit to a credit check
• Provide a copy of the bond requirements
• Turn over additional information (as necessary)

The surety agency will quote a cost for the bond premium based on the application information. After paying the premium, the bond becomes active, and the surety supplies a document proving it.

The Cost of Tennessee Surety Bonds

Most surety bonds cost a small percentage of the bond value. For example, a bond valued at $10,000 will have a premium in the hundreds of dollars. How much exactly depends on your credit and financial history. Credit scores below 700 or blemishes from past financial mistakes like bankruptcy will lead to higher premiums, just as great credit will lead to lower ones. A special program from Viking Bond Service helps Tennessee residents with less-than-perfect credit meet more of their bonding needs.

Do You Need to Renew Surety Bonds in Tennessee?

Some but not all surety bonds require renewal. During the renewal process, the surety will assess any changes to the bonded person's credit, then quote a new premium price based on those changes. That means you could pay more or less for the same bond than you did before.

Tennessee Surety Bonds From Viking Bond Service

Viking Bond Service works all across Tennessee and helps with all kinds of bonding needs. Request a quote today to learn how much a bond might cost or rely on our expert team to get good information and personalized answers to all your bonding questions. Contact us or call 1-888-2-SURETY (1-888-278-7389) at your convenience.