Tennessee Department of Commerce and Insurance - Board for Licensing Contractors

https://www.tn.gov/commerce/regboards/contractor.html

• Licenses are issued with a monetary limit, the maximum approved amount for a single construction project or contract.
• A contractor's working capital and net worth must each amount to at least 10% of the proposed monetary limit. For example, an applicant with a net worth of $150,000 and a working capital of $10,000 would be eligible for a monetary limit of $100,000, assuming they also meet experience requirements.

• Contractors must provide a certificate of insurance as proof of having general liability and workers' compensation insurance.
• The coverage minimums for general liability insurance depend on the monetary license limit requested: Contractors requesting a monetary limit of up to $500,000 need at least $100,000 of coverage, contractors requesting a limit of between $500,001 and $1,500,000 need at least $500,000 of coverage, and contractors requesting a limit of $1,500,001 or more need at least $1,000,000 in coverage.

There is no general bonding requirement for a contractor's license, however, in some cases contractors are permitted to submit a bond in order to meet working capital or other requirements.

• A contractor's license is required for projects worth $25,000 or more when acting as either: A prime contractor; an electrical, mechanical, plumbing, HVAC, or roofing subcontractor; a masonry subcontractor on a project worth at least $100,000; or as a construction manager on projects worth at least $25,000.
• Unlimited licenses are available for contractors with at least $300,000 of working capital and a net worth of at least $300,000.