Several states updated surety bond and financial-responsibility requirements in 2026. Some of these changes are already in effect, impacting auto dealers, contractors, landscape contractors, and public adjusters. Another requirement enacted in Tennessee this year takes effect January 1, 2027.
If your business operates in one of the affected states or industries, understanding what changed can help you prepare for your next license application or renewal and avoid compliance issues.
Here are several important surety bond changes to know in 2026—and one upcoming requirement to prepare for now.
Ohio Increased Its Used Motor Vehicle Dealer Bond to $75,000
Ohio significantly increased the surety bond requirement for used motor vehicle dealers in 2026.
Effective April 1, 2026, Ohio Administrative Code Rule 4501:1-3-11 requires applicable used motor vehicle dealer license applications to include a surety bond of at least $75,000, up from the previous $25,000 requirement.
The bond is posted with the Ohio Attorney General in favor of the state and helps replenish funds used to compensate qualifying retail purchasers under Ohio law. The $75,000 bond may also be used to satisfy the rule’s separate $75,000 net-worth requirement.
There is also an important exemption. A bond is not required when the used motor vehicle dealer—or a qualifying owner, officer, trustee, partner, or member—currently holds or held within the previous year an Ohio new motor vehicle dealer, adaptive mobility dealer, or leasing dealer license, provided that license was not suspended, revoked, or found in violation of the applicable consumer-compensation statute.
Because individual dealers may be affected differently depending on their licensing and renewal circumstances, existing Ohio dealers should verify their requirements before replacing an existing bond.
Need an Ohio dealer bond? Apply today.
Georgia Increased Its Used Motor Vehicle Dealer Bond to $50,000
Georgia also increased its bond requirement for used motor vehicle dealers in 2026. Effective July 1, 2026, the statutory bond amount increased from $35,000 to $50,000.
Georgia used motor vehicle dealer licenses operate on a biennial cycle and expire September 30 of even-numbered years. That makes the 2026 renewal period particularly important for dealers reviewing their bond coverage.
The bond is intended to protect purchasers and subsequent owners from certain covered losses resulting from dealer conduct addressed by Georgia law.
Dealers applying for or renewing a license should make sure they’re using the current bond amount and the bond form required by the Georgia State Board of Registration of Used Motor Vehicle Dealers.
Need a Georgia dealer bond? Apply today!
Oregon Replaced Its Job-Size Bond Tiers for Landscape Contracting Businesses
Oregon made a significant change to landscape contractor bonding on January 1, 2026. Previously, landscape contracting business bond amounts varied based on job size, ranging from $3,000 to $20,000.
Under the new structure, landscape contracting businesses generally must maintain a $20,000 surety bond, regardless of job size. The exception applies to businesses operating under a probationary-phase license, which still require a $15,000 bond.
The change stems from SB 864 and was implemented by the Oregon Landscape Contractors Board. Businesses must keep the required bond and liability insurance active throughout the life of their license, with proof of coverage on file with the Board.
For established landscape contracting businesses, the biggest change isn’t simply a higher bond amount—it’s the elimination of the previous job-size-based bond tiers.
Need a landscape contractor bond? Apply today!
Tennessee Introduced a New Contractor’s Surety Bond Option
Tennessee introduced a new financial-responsibility option for licensed contractors beginning July 1, 2026.
Contractors may now use the Tennessee Board for Licensing Contractors’ Contractor’s Surety Bond as an alternative to submitting a CPA-reviewed or CPA-audited financial statement.
The bond must be at least 50% of the requested monetary limit, and applicants or licensees choosing this option must submit the Board-approved Contractors’ Surety Bond form.
For example, a contractor requesting a $500,000 monetary limit would need a Contractors’ Surety Bond of at least $250,000.
Don’t confuse this new Contractor’s Surety Bond option with other contractor license bonds used in Tennessee. This particular bond was introduced as an alternative to the Board’s CPA-reviewed or CPA-audited financial statement requirement.
Need a Tennessee contractor bond? Apply today!
South Carolina Now Requires Public Adjusters to Demonstrate $20,000 in Financial Responsibility
South Carolina established a new financial-responsibility requirement for public adjusters in 2026.
Under South Carolina’s new Insurance Adjusters Act, public adjusters must provide evidence of financial responsibility before a license is issued and maintain it throughout the duration of the license.
The requirement can be satisfied with either:
- A surety bond of at least $20,000, or
- An irrevocable letter of credit of at least $20,000 from a qualified financial institution.
When a surety bond is used, it must be issued by an insurer authorized to issue surety bonds in South Carolina and must be in favor of the state.
The law also addresses termination of the bond and requires advance written notice. If the required evidence of financial responsibility terminates or becomes impaired, the public adjuster’s authority to act is affected.
Need a public adjuster bond? Apply today!
Coming in 2027: Tennessee HOAs Will Have a New Fidelity Bond Requirement
One additional law enacted in 2026 is worth preparing for now, even though the requirement doesn’t begin until next year.
Beginning January 1, 2027, certain Tennessee homeowners associations and unit owners’ associations that collect assessments for common expenses must maintain blanket fidelity coverage.
The law permits qualifying fidelity bond or insurance coverage protecting the association against certain losses caused by theft or dishonesty by officers, directors, employees, managing agents or employees of managing agents.
In general, required coverage must equal the association’s reserve balances plus one-fourth of its aggregate annual assessment income, subject to a minimum coverage amount of $10,000.
Because the requirement begins January 1, affected associations should review their existing fidelity coverage before the end of 2026.
Official source: Tennessee Public Chapter 731 (SB 2326/HB 2338)
What Should You Do When Your Bond Requirement Changes?
Bond requirements can affect whether a business can obtain or maintain a required license. When a state changes its requirements, don’t assume an existing bond will automatically remain sufficient.
Before applying for or renewing a license:
- Confirm the current bond amount and requirements with the applicable licensing agency.
- Make sure you’re using the correct bond form and obligee.
- Review your bond’s effective and expiration dates.
- Allow additional time for underwriting if the required bond amount has increased substantially.
- Make sure you file the bond according to the licensing agency’s requirements.
Remember, the bond amount isn’t generally what you pay for the bond. The required amount represents the bond’s penal sum. The premium paid to obtain the bond depends on the bond type, amount and applicable underwriting factors.
Stay Ahead of Changing Surety Bond Requirements
State bonding requirements can change from one licensing cycle to the next. Businesses that don’t catch those changes before an application or renewal can face unnecessary delays.
ZipBonds helps contractors, auto dealers, and other businesses obtain the surety bonds required for licensing and compliance. If one of these recent changes affects your business—or you’re preparing for a new requirement taking effect in 2027—our team can help you identify the bond you need and move through the application process.
Call us at (888) 435-4191, email support@zipbonds.com or apply online today.