Who needs a contractor license bond in Johnson City, Tennessee?
All general contractors and trade subcontractors must post a $10,000 surety bond. In Johnson City, general contractors include those performing work in the following areas:
- Fire alarm systems
- Fire sprinklers
- Fire suppression systems
- Gas mechanical
The above contractors and all subcontractors must also provide:
- A permit for every project unless requirements state otherwise
- A business tax license, the type of which depends on the value of necessary permits
- A Tennessee state contractor’s license if a project is valued at $25,000 or more
- Proof of worker’s compensation or exemption if a project is valued at $25,000 or more
You can also contact ZipBonds with any questions by calling (888) 435-4191. We’d be happy to walk you through the entire bonding process!
See our page on Tennessee Contractor License Bonds for state-specific information.
Get Your Johnson City Contractor Bond:
How do contractor license bonds work?
A contractor license bond ensures that clients receive satisfactory work from hired contractors. By agreeing to the bond contract, contractors promise to follow the standards and regulations of the obligee (Johnson City).
Clients can file a claim against the bond if they suffer damages because their contractor broke the bond contract. If the claim is legitimate, the surety company will step in to cover the costs to settle the claim immediately. However, the contractor will be responsible for repaying the surety for all claim-related expenses, including interest and fees.
You’ll pay a premium to get your contractor bond – a small percentage of the total bond amount. ZipBonds often issues these bonds instantly for as little as $100.
Frequently Asked Questions
A contractor bond typically lasts for one calendar year and must be renewed to remain active. The annual bond renewal deadline will be listed on your bond form.
The bond limit (penal sum) is the maximum dollar amount a client can receive by filing a claim against your contractor bond. If damages exceed that sum, clients may seek other forms of compensation. As a contractor, you can typically avoid allegations by responding to client complaints quickly and respectfully and finishing work on time.
Apply for Your Contractor License Bond in Johnson City, TN
ZipBonds offers the fastest and most secure option for getting bonded. Our all-digital platform is intuitive and straightforward. Apply online, email firstname.lastname@example.org or call 888.435.4191 to speak with an agent directly.
Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”
Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.