State requirements
Tennessee contractors are licensed by Tennessee Board for Licensing Contractors (Tennessee Department of Commerce and Insurance). General liability is required to hold the license. Workers compensation is required once you reach the state's employee threshold.
| Licensing authority | Tennessee Board for Licensing Contractors (Tennessee Department of Commerce and Insurance) |
|---|---|
| General liability required for license | Yes |
| Statutory GL minimum | Tiered by license monetary limit: $100,000 (limits up to $500,000); $500,000 (limits $500,001-$1,500,000); $1,000,000 (limits $1,500,001 and unlimited) |
| Workers compensation | Required above a threshold |
| Contractor license bond | None verified at state level |
Verified against https://www.tn.gov/commerce/regboards/contractors/license/get/contractor.html in the October 2026 research pass. Where a figure is not stated, no authoritative source published one, and we say so rather than estimating.
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Tennessee Board for Licensing Contractors (Tennessee Department of Commerce and Insurance)
A contractor license is required to bid or contract on projects of $25,000 or more as a prime contractor, certain subcontractor or construction manager (masonry subcontractors at $100,000 or more). Proof of general liability insurance and workers' comp (or an approved exemption) is required to obtain or renew a Contractor or Home Improvement license. No surety bond is mandatory, but since July 1, 2026 a surety bond of at least 50% of the requested monetary limit may be filed in lieu of a financial statement. Non-construction employers need workers' comp at five or more employees; construction employers must cover employees with as few as one, unless owners/officers register as a 'Construction Services Provider'.
The state sets a minimum of Tiered by license monetary limit: $100,000 (limits up to $500,000); $500,000 (limits $500,001-$1,500,000); $1,000,000 (limits $1,500,001 and unlimited). What you actually need is set by the contract in front of you. Most Tennessee general contractors require one million per occurrence and two million aggregate from their subcontractors, plus additional insured status and a waiver of subrogation.
Workers compensation is required once you reach the state's employee threshold. Operating without it where it is required exposes the business to penalties and to direct liability for an injured worker's medical costs.
Any vehicle used for business needs commercial auto. A personal policy excludes business use in every state, and it will not cover the tools inside the truck.
General liability never covers your own tools. Inland marine covers them in transit and on site, including theft, which is the most common loss contractors actually file.
Workers compensation is required once you reach the state's employee threshold.
Workers compensation covers medical costs and lost wages for a work-related injury or illness. It is separate from general liability, which covers injury to other people. If an employee is hurt on a job site in Tennessee, that is a workers compensation claim, and general liability will not respond to it.
This research did not verify a state-level contractor license bond for Tennessee. Where a state does not impose one, cities and counties frequently do, particularly for work above a dollar threshold or on public projects. Confirm with the authority that issues your permit before you bid.
Beyond the license bond, bid bonds and performance bonds come up on larger and public work. Bid bonds are typically priced as a percentage of the bid amount rather than a flat fee, so the cost scales with the project.
The state sets a minimum of Tiered by license monetary limit: $100,000 (limits up to $500,000); $500,000 (limits $500,001-$1,500,000); $1,000,000 (limits $1,500,001 and unlimited). That is a floor for licensing, not a recommendation, and contracts in Tennessee commonly require more.
Workers compensation is required once you reach the state's employee threshold.
This research did not verify a state license bond for Tennessee. Some states have none at state level and impose requirements at the city or county level instead, so check with the local authority where you will be pulling permits.
Tennessee Board for Licensing Contractors (Tennessee Department of Commerce and Insurance).
The consequences run from losing the contract to losing the license. A general contractor who finds your certificate is not what the subcontract required will typically stop work and withhold payment until it is corrected, and an uninsured loss becomes a personal liability rather than an insurance claim.
Yes. A single policy can list every state you operate in. Pricing is driven by the highest-exposure state on the schedule, so tell us all of them rather than only your home state.
Requirements differ enough by state that it is worth checking before you bid.
Tell us your trade, payroll and what Tennessee requires of you.
