Tennessee running occupancy right-of-way bonds.
From $100.
A utility owner can post a running surety bond with TDOT to cover all of its approved use-and-occupancy work in the state highway right of way for a region — instead of bonding each permit separately. The Regional Utilities Engineer sets the amount; pricing starts from $100, and no credit check up to $100,000.
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How much does a Tennessee running occupancy right-of-way bond cost?
1% of the bond amount, from $100. Enter your amount in the calculator for the exact price.
Three steps. One sitting.
No underwriting queue for the standard running right-of-way bond — enter your amount, pay, and file with TDOT. Here is the whole thing:
Apply online
Your business details, the bond amount TDOT set, and the effective date — that is the application.
Issued on the spot
No credit check up to $100,000, so most bonds are issued instantly as soon as you pay.
File with TDOT
Submit the executed running surety bond with your use-and-occupancy application to the TDOT Regional Utilities Engineer. Wet-ink originals mailed whenever TDOT insists.
What it is and who needs it.
What the running right-of-way bond actually guarantees
When a utility owner places facilities — lines, pipes, conduit — within the state highway right of way, TDOT requires a use-and-occupancy agreement and a surety bond guaranteeing the work. The bond guarantees the principal’s improvements are built and maintained at the location and in the manner shown on the approved plans, and that the terms and conditions of the agreement are performed.
Rather than bond each permit, a developer or utility can post a running surety bond (TDOT Form U-4) in an amount the Regional Utilities Engineer establishes to cover all of its approved use-and-occupancy agreements for a particular geographic area. It runs to the Tennessee Department of Transportation as obligee.
If the work damages the right of way or the agreement’s terms aren’t met, TDOT can recover against the bond — and if the surety pays, the principal repays the surety. It is not insurance for you. We issue the amount the Regional Utilities Engineer set, from $100, with no credit check up to $100,000 in the application.
You need this bond if you are
Claims, renewal, filing, and what sets the price.
If a claim is made
A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.
The surety investigates and pays a valid claim, up to the bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.
Renewal and term
The premium covers a one-year term from the effective date you choose.
Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.
How to file it
File with TDOT. Submit the executed running surety bond with your use-and-occupancy application to the TDOT Regional Utilities Engineer. Wet-ink originals mailed whenever TDOT insists.
What sets the price
The premium is 1% of the bond amount, $100 minimum: the amount the obligee sets moves the price, not your business profile.
No credit check up to $100,000. Above that, the carrier may run a soft pull, which never affects your score.
Where a check runs, it decides approval; the rate is the same for everyone approved.
One application, issued on the spot.
Submit the application with the bond amount TDOT set — the executed running surety bond is generated instantly, ready to file.
Start the application →Common questions.
Other Tennessee bonds.
Price and requirements checked on the carrier’s application, . Page updated .
Running right-of-way bond, issued today.
From $100. Enter the amount TDOT set and file the same day.