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Surety Bonds in Tennessee

When you're required to get a surety bond in TN, it's important to comply sooner rather than later. This quick guide explains everything you need to know.

How Do Surety Bonds in Tennessee Work?

A surety bond is an agreement between three parties. The principal is the person who acquires the surety bonds and accepts liability for claims filed against it. The obligee may file a claim if the principal does something illegal, unethical, or in violation of a contract. And finally, the surety is the agency that issues the bond to the principal and guarantees payment to the obligee for valid claims. If the surety settles, however, the principal must pay that amount back, with interest and fees, or face collections.

Tennessee Surety Bonds Types

There are different surety bond types, but in all cases the goal of surety bonds is to discourage misconduct by making the bond holder liable for it. Most types fall into one of these categories:

• Commercial – Many professional and businesses licenses have surety bond requirements.
• Contract – Before finalizing a contract, especially in the construction industry, someone may need to get a surety bond.
• Court – Judges can require a defendant or plaintiff to get a surety bond before a trial will proceed.
• Fidelity – A business can get a fidelity bond voluntarily to protect against the risk of employee misconduct.

Who Needs a Surety Bond in Tennessee?

Large parts of the population need a surety bond in TN. Some for their jobs, others because they need to establish trust with a third party. Bond requirements can be one-time and temporary. Or they can be ongoing, requiring someone to have bond coverage for years on end. Anyone should be prepared to meet Tennessee surety bond requirements if and when they appear. Contact Viking Bond Service for help understanding and meeting any surety bond requirements.

How to Get a Surety Bond in Tennessee

Application requirements will vary depending on the bond type and amount. Most bonds will only require the following steps, but some will have more extensive requirements:

• Fill out a standard bond application with information about your background, finances, and business interests.
• Submit to a credit check.
• Provide a copy of the surety bond requirements.
• Give the surety any other documents it requests.

Underwriters will use the application materials to quote the cost of a surety bond, called the premium. The bond activates after paying the premium, at which time the surety supplies documentation proving the surety bond requirement has been met.

The Surety Bond Cost in Tennessee

Costs are unique to each bond and each person. They are typically a small percentage of the total bond size, and the exact cost depends on the bond seeker's credit standing. People with excellent credit will pay less, while those with lower credit scores or a spotty financial history will pay more, or even be denied in some cases.

Take advantage of the bad credit surety bond program at Viking Bond Service to get a fair evaluation – and a better chance at approval – regardless of your credit.

Do You Need to Renew Surety Bonds in Tennessee?

Some bonds like contract and court bonds will only last for a set period of time. Others, like commercial bonds, must be renewed and stay active for a license to remain valid. Renewal involves another credit check and an updated premium price based on any credit changes.

Viking Bond Service: Your Source For Surety Bonds in Tennessee

Don't spend your time searching for a trustworthy surety agency that can issue the specific bond type you need, you've already found one. Viking Bond Service has everything you're looking for. You can get a no-cost, no-obligation quote in as little as 24 hours by requesting one at your convenience. For more information, contact us and our team of surety bond experts online or call 1-888-2-SURETY (1-888-278-7389).