How to Get a Surety Bond in Tennessee
Surety bonds are designed to offer consumers protection from businesses or firms that do not carry out promised work or cause unlawful damage to property while serving a customer. Consumers may be able to seek compensation from the surety if the contracted business or firm does not meet its obligations. Many government agencies in Tennessee, such as the Tennessee Department of Transportation, Department of Agriculture and Motor Vehicle Commission, require that contractors take out surety bonds. Many Tennessee municipalities have similar regulations. Certain licensed professions in Tennessee, such as auto dealers and mortgage brokers, also require that all licensees have surety bonds.
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Instructions
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Contact a surety bond agency. Surety bonds are a sort of insurance, so many insurance companies also offer surety bonds. You should start with your own insurance company and check if it offers surety bonds. If not, the company should be able to offer information on established companies that do. Alternately, you can search for a surety bond company on your own, using an Internet search or a phone book.
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Apply for a surety bond. Once you find a surety bond provider with which you are comfortable, you must apply for the bond. You must know the type of bond you need and the amount. You must also give detailed information on your business; in particular, its credit history. Much like a bank loan, the surety bond company is risking its money with you, so it wants to know as much as possible about your company, its history and financial position. It is common to complete these applications in person at the surety bond provider, but some companies offer an on-line application process.
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Pay your fees. Standard rates for surety bonds in Tennessee are between one and three percent of the bond's total value. These rates can vary from provider to provider, however. Also, your company's financial position and your credit history can also affect the rates.
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