Tennessee Collection Service Bond

To run a collection agency in Tennessee, you need a collection service bond. The amount depends on your size. It goes to the Tennessee Collection Service Board. It protects your consumers.

Bond Amount
$15,000–$25,000
Typical Premium
$150–$1,250/yr
Term
1 Year
Required By
TN Collection Service Board (Dept. of Commerce & Insurance)
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What Is the Tennessee Collection Service Bond?

The Tennessee collection service bond stands behind how you run your agency. If you mishandle collected funds, harmed parties can file a claim. The surety covers it, and you pay that money back.

How much bond you need in Tennessee:

Who Needs This Bond in Tennessee?

How to Get Bonded — Step by Step

  1. Apply for your Tennessee collection license.
  2. Get your bond here. Most quotes come back fast.
  3. Send the bond to the Tennessee Collection Service Board.
  4. Once approved, get licensed and start collecting.

Renewal & Continuous Bond Coverage

Plan to renew your Tennessee collection license every year. Keep the bond current. A lapse can cost you your license.

Frequently Asked Questions

How is the Tennessee bond amount set?

By your number of employees, from $15,000 up to $25,000.

Does the Tennessee bond protect me?

No. The bond protects your customers and the state, not you. If a claim is paid, you repay the surety. It is not insurance for you.

How fast can I get bonded in Tennessee?

Most quotes come back fast, often within a day. Many bonds are issued the same day for good credit.

How much does the bond cost?

You pay a yearly premium — a small percent of the bond amount. Good credit means a lower rate.

How a Surety Bond Works

A collection agency bond is a type of surety bond. The picture below shows the three parties and what happens if someone files a claim.

Diagram of how a surety bond works: the obligee requires the bond, the principal applies and signs an indemnity agreement, and the surety issues the bond; if the principal fails, the obligee files a claim, the surety investigates and may pay, and the principal reimburses the surety.

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Related: All Tennessee surety bonds · What is a surety bond? · How surety bond costs are calculated

Underwriting Disclosure. All surety bond applications are subject to underwriting review and approval by the issuing surety company. Quoted premiums are estimates only; final pricing is determined by individual underwriting factors, which may include personal and business credit history, financial statements, industry experience, and claims history. Many bonds qualify for instant online approval, while others may require additional documentation, financial review, or indemnitor signatures prior to issuance. SuretyBondly makes no representation, warranty, or guarantee of approval, eligibility, premium amount, bond form, or issuance timing. Bond amounts, forms, and requirements are governed by the applicable obligee and statutory authority and may change without notice. Information provided on this page is for general informational purposes only and does not constitute legal, financial, or tax advice.