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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. And Viking Bond Service is here to help you every step of the way. This quick guide explains everything you need to know.

What is a Tennessee Surety Bond?

A Tennessee surety bond is a tool that limits the risk exposure arising from a variety of business activities. The bonds protect consumers, businesses, the public at large, and even government entities from potential fraud or incompetence on the part of bonded professionals. For instance, a building contractor who absconds with the money or produces shoddy workmanship presents a hazard to the contract holder and the public. A contractor's license surety bond ensures that the contractor will abide by all pertinent laws and regulations in completing their work, or face direct financial liability.

A surety bond protects others by creating a financial incentive for the bonded individual or business to abide by all pertinent laws and regulations. It also establishes a mechanism for compensating damaged parties if the bondholder violates these statutes.

How Does a Surety Bond in Tennessee Work?

Like any surety bond type, surety bonds in Tennessee are legal contracts made between three essential parties:

• The Principal is the person who acquires the surety bonds and accepts liability for claims filed against it.
• The Obligee is the entity requiring the bond. In Tennessee, the obligee may be an individual, a business, or a government agency at the county, state, or federal level.
• The Surety is the agency that issues the bond to the principal and guarantees payment to the obligee for valid claims.

If a protected party is harmed by the fraudulent or incompetent actions of a surety bondholder, they can file a claim against the bond. The surety then investigates the claim to determine its validity. If the surety finds for the claimant, the surety pays to cover the damages up to the total bond value. They will dismiss any meritless claims. The principal is financially responsible for all valid claims against the bond and must reimburse the surety for any payments made.

Types of Tennessee Surety Bonds

There are many types of surety bonds in Tennessee, but in all cases, surety bonds discourage misconduct by making the bondholder liable. Most types fall into one of these categories:

• Commercial – Many professional and business licenses have surety bond requirements.
• Contract – Before finalizing a contract, especially in the construction industry, someone may need to get a Tennessee surety bond.
• Court – Judges can require a defendant or plaintiff to get a surety bond before their trial proceeds.
• 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 people require them for their jobs, and others 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. Therefore, anyone should be prepared to meet surety bond requirements if and when they appear. Viking Bond Service is here to answer your questions and assist you with meeting any surety bond requirements.

How Much Does a Surety Bond in Tennessee Cost?

The costs of surety bonds in Tennessee are unique to each bond and each person. The expenses are determined by two factors – the bond value and the principal's credit score. The obligee typically establishes the bond value. Some bonds are set at a few hundred dollars; others are millions. The premium is usually a tiny percentage of the total bond size, often 1-5%. So, if you need a $10,000 surety bond, you'll pay a premium between $100-$500. The exact rate depends on the bond seeker's credit standing.

Tennessee Surety Bond Requirements: Can I Get One With a Bad Credit?

Tennessee surety bond companies gauge the risk of any given bond by the principal's credit score. It provides a handy way to estimate how financially responsible each principal is likely to be. People with excellent credit pay lower premiums, while those with poor credit scores or a spotty financial history will pay more. Many surety companies deny coverage to some people with damaged credit. At Viking Bond Service, we do not believe your credit defines you. Our Bad Credit Surety Bond Program ensures you get a fair evaluation – and a better chance at approval – regardless of your credit.

How Can I Get a Surety Bond in Tennessee?

At Viking Bond Service, you can get your Tennessee surety bond quickly and easily. Simply complete our online bond application with information about your background, finances, and business. Then, we'll run a credit check and ask for any supplemental information we might need. And that's it! We'll send you a competitive quote ASAP. You're covered when you pay the bond premium. We'll send you your bonding verification immediately.

Do You Need to Renew Surety Bonds in Tennessee?

Some Tennessee surety bonds, like contract and court bonds, only last for a brief time. Others, like commercial bonds, must be renewed annually and remain 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 our team of surety bond experts online or call us toll-free at 1-888-2-SURETY (1-888-278-7389). We are honored to be your surety partner.