2.3 Application Package, Insurance Minimums, Renewals, and Continuing Education

The Initial Contractor License Application Package (core.tn.gov)

After the Qualifying Agent passes the Tennessee Business and Law examination and any applicable trade examination through Prov, the business entity submits its initial contractor license application online through the state's Comprehensive Online Regulatory & Enforcement System (core.tn.gov). Qualifying Agent exam scores remain valid for two (2) years for initial licensure.

A complete initial application package must include eight mandatory elements:

1. Non-Refundable $250 Initial Application Fee: Paid electronically through core.tn.gov at the time of filing.
2. Official Prov Score Report(s): Documenting passing scores ($\ge 73\%$) for the Qualifying Agent on both the Tennessee Business and Law exam and the applicable trade exam(s) (or community college course completion certificate for BC-A/r).
3. Financial Qualification Proof: Either a GAAP-compliant CPA/LPA Reviewed financial statement (for monetary limits up to $3,000,000) or Audited financial statement (for Unlimited monetary limits over $3,000,000) dated within 12 months of application, OR a continuous Tennessee Contractor's Surety Bond equal to at least 50% of the requested monetary limit (T.C.A. § 62-6-111, effective July 1, 2026).
4. Insurance Certificates: Current Certificates of Insurance proving mandatory Commercial General Liability (CGL) coverage and Workers' Compensation coverage (or a valid Bureau of Workers’ Compensation Exemption certificate).
5. Reference Letter: At least one (1) written reference letter from a past client, employer, or code official attesting to the applicant's contracting competence and financial integrity (references from relatives are rejected; applicants for BC-A,b(sm) submit a reference/inspection verification from a building code official).
6. Signed and Notarized Contractor's Affidavit: A sworn statement affirming that the applicant has not bid upon, offered to engage in, or performed unlicensed contracting work in Tennessee prior to licensure.
7. Felony and Disciplinary Disclosure: Complete disclosure of any felony or misdemeanor convictions or prior licensing discipline in Tennessee or any other state, supported by certified court dispositions and a written explanation.
8. Secretary of State Registration (Active / Good Standing): Corporations, LLCs, limited partnerships, and LLPs must submit proof of active registration and good standing with the Tennessee Secretary of State. The legal entity name (and any registered assumed name/DBA) on the license application, financial statement, surety bond, and insurance certificates must match word-for-word.

Clean, routine initial applications that satisfy all statutory criteria may receive expedited administrative approval from Board staff without waiting for the full Board's bi-monthly meeting, whereas applications involving felony disclosures, unlicensed contracting history, or disputed financials are referred to the Board for a formal appearance.

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Mandatory Insurance Minimums: General Liability and Workers' Compensation

Commercial General Liability (CGL) Tiers (Tenn. Comp. R. & Regs. 0680-06-.02)

Every licensed contractor must maintain continuous Commercial General Liability (CGL) insurance throughout the active life of the license. The Certificate of Insurance must list the Tennessee Board for Licensing Contractors as the Certificate Holder (a frequent exam distinction: the Board is designated as Certificate Holder, not as an Additional Insured or Loss Payee). The minimum required general liability limit is tied strictly to the license's Monetary Limit:

Workers' Compensation Insurance and the Exemption Registry (T.C.A. § 50-6-902)

In Tennessee, the construction industry is governed by stricter Workers' Compensation rules than general non-construction businesses (which trigger mandatory coverage at 5 employees):

• 1-or-More-Employees Rule: Any construction industry employer with one (1) or more employees (full-time, part-time, family members, or seasonal workers) must carry active Workers' Compensation insurance from the first day of employment.
• Sole Proprietors, Partners, LLC Members, and Corporate Officers: Active owners, partners, LLC members, or corporate officers who act as Construction Services Providers and have no employees (or who elect to exclude themselves from their firm's Workers' Compensation policy) must either:
  1. Carry active Workers' Compensation insurance covering themselves, OR
  2. Register on the Tennessee Bureau of Workers’ Compensation Construction Services Provider Workers' Compensation Exemption Registry (subject to the statutory cap on exempt active officers/owners on commercial jobsites) and file their active exemption certificate with the Board.

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Biennial License Renewal, Financial Statements, Late Penalties, and Retirement

Renewal Timeline and Schedule of Board Fees (T.C.A. § 62-6-116)

A Tennessee contractor's license is valid for two (2) years (24 months) and expires on the last day of the anniversary month in which it was originally issued. To prevent a lapse in licensing authority, the complete renewal application and $200 biennial renewal fee should be submitted via core.tn.gov at least 30 days before expiration, as the Board recommends to allow processing; the license must actually be renewed before it expires.

Relaxed Financial Statement Tiers at Renewal (Rule 0680-01-.13)

Provided a contractor is renewing at its existing monetary limit (and not requesting a limit increase), the Board permits lower-cost financial reporting at renewal—unless the licensee maintains the continuous 50% Contractor's Surety Bond:

• Renewal Monetary Limit of $1,500,000 or Less: The licensee may submit a self-prepared (in-house) balance sheet accompanied by the Board's signed and notarized financial statement verification affidavit. No CPA review or compilation is required unless specifically ordered by the Board.
• Renewal Monetary Limit Over $1,500,000 (Including Unlimited): The licensee must submit at minimum a CPA or LPA Compiled financial statement prepared in accordance with GAAP (a Reviewed or Audited statement is also accepted; income-tax-basis statements are rejected).
• Discretionary Renewal Formula (Rule 0680-01-.13(1)(b)): For an established licensee renewing in good standing, the Board has discretion to allow the contractor to retain a monetary limit supported by either $10 \times \text{Working Capital}$ or up to $50\% \times \text{Net Worth}$ ($\max(10 \times \text{WC}, 0.50 \times \text{NW})$) when temporary working capital dips occur.

Worked Renewal Compliance Example: Suppose Cumberland Homes, LLC holds a BC-A residential license initially issued in 2018 with a $900,000 monetary limit expiring October 31. To follow the Board’s 30-day advance submission recommendation by October 1, Cumberland Homes must submit: (1) the $200 biennial renewal fee; (2) either a self-prepared notarized balance sheet (allowed because its $900,000 limit is $\le \text{\textdollar}1,500,000$) or a continuous $450,000 Contractor's Surety Bond; (3) a Certificate of Insurance showing at least $500,000 in CGL coverage (required for limits from $500,001 to $1,500,000) naming the Board as Certificate Holder, plus Workers' Compensation coverage or active Exemption Registry proof; (4) proof of Active / Good Standing status with the Tennessee Secretary of State; and (5) certificates proving 8 hours of Board-approved Residential Continuing Education (RCE) completed during the 2-year cycle.

Late Renewal Penalties and the 12-Month Forfeiture Rule (T.C.A. § 62-6-116)

• Up to 12 Months Expired: A contractor may reinstate an expired license within 12 months (1 year) of expiration by submitting the renewal package, the $200 renewal fee, and a mandatory $20 per month late penalty for each month (or fraction of a month) the license has been expired (up to $240 in late fees at 12 months).
• More Than 12 Months Expired: After 1 year (12 months) past the expiration date, the license is permanently forfeited and cannot be renewed. The contractor must file a brand-new initial application ($250 fee), submit a CPA Reviewed/Audited statement (or 50% Surety Bond), and satisfy the current application and qualification requirements; exam reuse or waiver depends on the Board’s rules and the QA’s existing qualification.

License Retirement Status (T.C.A. § 62-6-116(f))

A contractor in good standing with no pending disciplinary charges may place an active license into Retirement (Inactive) status by paying a retirement fee ($25 per year / $50 per 2-year cycle) for a seven-year retirement cycle without having to retake examinations upon approved reactivation. Retirement can continue beyond seven years by paying the Board’s $200 reset fee and continuing retirement fees. While in retirement status, the contractor may not bid, contract, or perform any construction work requiring licensure.

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Residential Continuing Education (RCE) and Record Retention

Under T.C.A. § 62-6-112 and Chapter 0680-09, any contractor holding a residential classification (BC-A, BC-A/r, or BC-A,b(sm)) whose license was initially issued after January 1, 2009 must complete eight (8) hours of Board-approved Residential Continuing Education (RCE) every two (2) years as a condition of license renewal (at least 4 hours from an approved classroom/online course provider; up to 4 hours via membership in a Board-approved professional trade association). Residential contractors continuously licensed on or before January 1, 2009 are grandfathered unless their license lapses for more than 1 year.

Maintain records for each applicable legal, contractual, insurance, and claims period; Tennessee’s contractor rules do not establish one universal three-year period for every project and financial record.

Source check (October 13, 2026): Board residential continuing education.