Operating a painting business in Tennessee requires proper licensing and insurance coverage. This comprehensive guide provides painters and painting contractors with a detailed overview of Tennessee’s licensing requirements, steps to obtain a new or renew an existing license, reciprocity with other states, and insurance requirements.

Introduction

Tennessee requires painters and painting contractors to have a state-issued license to legally operate as a business. The Tennessee Board for Licensing Contractors and Home Improvement regulates and issues licenses to painters and painting contractors in the state.

Obtaining proper licensing ensures painters and contractors meet the required qualifications and assists in protecting the public from fraudulent or substandard work. Two main license types exist for painting contractors in Tennessee – the Home Improvement license and the Contractor’s license. The specific license required depends on the size and scope of the painting job.

Home Improvement License Requirements

The Tennessee Home Improvement license is required for remodeling and improvement projects on existing residential homes ranging in cost from $3,000 to $24,999. This includes interior and exterior painting jobs within this price range.

To qualify for a Home Improvement license, painting contractor applicants must fulfill the following requirements:

  • Be at least 18 years old – Applicants must be a minimum of 18 years old to hold a Home Improvement license.
  • Show proof of public liability insurance – All applicants must carry active public liability insurance and provide proof of coverage. The minimum coverage amount is $100,000 per occurrence for property damage and bodily injury claims.
  • Show proof of workers’ compensation insurance – Applicants must provide a certificate of insurance showing active workers’ compensation coverage. Sole proprietors and partnerships without employees may file an exemption.
  • Demonstrate financial responsibility – A financial statement prepared by a CPA or reviewed by a CPA demonstrating adequate financial strength must be submitted. Minimum working capital varies based on the license monetary limit requested.
  • Pass a business and law exam – The “Tennessee Business and Law” exam administered by PSI Testing Services must be passed by all applicants. The exam covers business organization, estimating, contracting, consumer protection laws, lien laws, safety, and other key subject areas.

The Home Improvement license costs $180 and is valid for two years from the date of issuance. This license allows painters and contractors to perform improvement projects up to $24,999 on existing residential homes only.

The Home Improvement license does not allow new home construction or improvements to commercial properties. Separate specialty licenses are required for electrical, painters, and HVAC work associated with home improvement projects.

Contractor’s License Requirements

For painting jobs valued at $25,000 or more, a Contractor’s license is required by the state of Tennessee. This applies to both general contractors bidding directly to homeowners and subcontractors performing work for general contractors.

To qualify for a full Contractor’s license, painting contractor applicants must fulfill the following requirements:

  • Be at least 18 years old – Applicants must be a minimum of 18 years old to hold a Contractor’s license.
  • Show proof of public liability insurance – All applicants must carry active public liability insurance and provide a certificate of insurance showing adequate coverage amounts based on the license monetary limit requested.
  • Show proof of workers’ compensation insurance – Applicants must provide proof of active workers’ compensation coverage. Sole proprietors and partnerships without employees may file an exemption.
  • Provide a CPA-audited financial statement – An audited financial statement prepared by a CPA demonstrating adequate financial strength must be submitted. Minimum working capital varies based on the license monetary limit requested.
  • Pass a business and law exam – The “Tennessee Business and Law” exam administered by PSI Testing Services must be passed. For certain specialty classifications, a trade exam may also be required.

The Contractor’s license costs $250 and is valid for two years from date of issuance. The monetary limit assigned to a Contractor’s license depends on the financial strength demonstrated through the audited financial statement.

The Contractor’s license allows painters and contractors to perform improvement projects of any value on residential or commercial properties. Separate specialty licenses for electrical, painters, and HVAC work are not required with the Contractor’s license.

Obtaining a New Painting Contractor’s License

Follow these key steps to obtain a new painting contractor’s license in Tennessee:

Step 1: Select the Appropriate License Type

  • Determine if a Home Improvement or Contractor’s license is required for your painting business based on typical project size and scope of work.

Step 2: Fulfill the Prerequisite Requirements

  • Gather all required documentation showing you meet eligibility based on age, insurance coverage, financial strength, and trade experience.

Step 3: Pass the Required License Exams

  • Schedule and pass the “Tennessee Business and Law” exam, plus any trade exams required for specialty classifications through PSI Testing Services.

Step 4: Submit Your Complete License Application

  • Fill out the license application fully and submit along with all prerequisite documentation and proper fees.

Step 5: Interview with the Licensing Board

  • Be prepared to interview with a member of the licensing board prior to approval, especially if you have any complaint/violation history.

Step 6: Allow 4-6 Weeks for License Application Processing

  • If approved, allow 4-6 weeks after submitting a complete application package to receive your new contractor’s license.
  • You may not legally contract, bid, or pull permits until properly licensed.

Renewing a Tennessee Painting Contractor’s License

Painting contractor’s licenses in Tennessee must be renewed every two years to remain valid and active. Licensees must renew their license before the expiration date printed on the license document.

To properly renew an active painting contractor’s license in Tennessee, the following requirements must be met:

  • Submit renewal application and fees – A renewal application and $250 fee must be submitted to the licensing board within 60 days of the license expiration date.
  • Provide updated financial statement – An updated CPA-prepared financial statement demonstrating continued financial responsibility must be provided with the renewal application.
  • Show proof of ongoing insurance – Updated certificates of insurance showing active liability and workers’ compensation must be submitted.
  • Complete continuing education – License holders must complete 8 hours of continuing education on business practices, law, trades, ethics or safety annually.

The license renewal process takes 30-45 days to process after submitting a complete renewal package. Late fees apply for renewals submitted up to 60 days past the expiration date.

Licenses cancelled for non-renewal over 60 days past expiration require completing the initial application process as a new applicant.

Reciprocity Agreements with Other States

Tennessee has license reciprocity agreements with several states, including:

  • Alabama
  • Arkansas
  • Georgia
  • Louisiana
  • Mississippi
  • North Carolina
  • Ohio
  • South Carolina
  • West Virginia
  • NASCLA licensees

Reciprocity allows contractors properly licensed in these states to waive Tennessee’s trade exam requirement when applying for a Tennessee contractor’s license. The business and law exam must still be passed by reciprocity applicants to obtain a Tennessee license.

All other standard licensing requirements apply, such as age limits, financial strength, insurance, and a board interview if needed. Reciprocity simplifies the process but does not automatically grant a Tennessee license to out-of-state painters.

Insurance Requirements

Painters and painting contractors licensed in Tennessee must carry appropriate insurance coverages, including:

  • Public liability insurance – This coverage is mandatory for licensure. It provides protection against third-party injury and property damage claims. Minimum coverage amounts start at $100,000 per occurrence but increase based on the license monetary limit approved.
  • Workers’ compensation insurance – This mandatory coverage pays medical expenses and lost wages to employees injured on the job. Sole proprietors and partnerships without employees may file an exemption from this requirement.

In addition to mandatory liability and workers’ compensation coverage, other recommended insurance policies for painters include:

  • Professional liability – Covers financial loss arising from faulty workmanship that damages a client’s property. Provides protection against costly remodeling defect claims.
  • Commercial auto insurance – Covers vehicles used for business purposes for liability, collision, comprehensice and medical payments. Required if company vehicles are used.
  • Equipment & tools coverage – Provides protection against theft and damage to expensive equipment and tools used for painting jobs. Ensures replacement cost reimbursement.
  • Builder’s risk – Covers painting and remodeling projects under construction. Provides crucial protection for jobs in progress against weather, theft, vandalism and accidents.

Maintaining proper insurance is crucial for all painting contractors to mitigate risk and avoid personal financial exposure from operating a painting business.

Conclusion

Operating legally as a painter or painting contractor in Tennessee requires obtaining the proper state-issued license and carrying adequate insurance. License types include Home Improvement for small jobs and Contractor’s for large jobs. Each involves meeting specific eligibility criteria, passing exams, providing financial statements, and submitting a complete application.

Key steps exist for obtaining a new license and renewing an existing license every two years. Reciprocity agreements allow contractors properly licensed in certain states to waive Tennessee’s trade exam requirement. But the business and law exam must still be passed for reciprocity.

All active license holders must carry the state’s minimum public liability and workers’ compensation insurance requirements. Carrying additional risk management insurance policies is also highly recommended.