Arizona contractors & trades
Life insurance for contractors who are the business
When you run the crew, sign the loans and bring in the work, your family and your business both ride on you. Most owners carry no group life insurance at all. Workers' comp, where it covers the owner at all, pays only for deaths on the job, and only what the state schedule allows.
Our owner spent 20 years in construction, so we know how your business actually works. We compare several carriers and call you with real prices. No obligation.
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Employees at big companies usually get some life insurance through work. Owners and independent tradespeople usually don't, and many assume workers' comp or a general liability policy covers it. Neither one replaces your income for your family.
The fix is usually a term policy sized to the house, the business debt and the years your family depends on you. Partners can use one to fund a buy-sell agreement, so the business survives if one of you doesn't.
Does the trade change the price?
For most construction work, carriers price life insurance mainly on age and health, not the job. Some higher-risk work, like working at heights, blasting, or certain aviation or diving jobs, can affect underwriting at some carriers.
This is where shopping several carriers matters. We'll tell you which ones treat your trade well before you apply anywhere.
What to cover
Four things ride on you
Size the policy to what would actually be left behind.
The house
The mortgage balance, so your family can stay put whatever happens to the business.
The business debt
Equipment notes, trucks, a line of credit, or an SBA loan. Lenders often ask for life insurance on the owner and may require it to be assigned to them.
Your income, for the years it's needed
What the household would lose, for as long as the kids are home or until retirement savings could carry it.
Your partners
If you co-own the company, life insurance can fund a buy-sell agreement. Your family gets paid fairly and your partner keeps the business.
Add up what applies, subtract what you already own, and that's the amount we'll price.
Questions
The ones worth asking first
Does workers' comp cover me if I own the company?
Often not. Owners and officers can usually choose to be excluded from workers' comp, and many sole proprietors aren't covered at all. Even where it applies, it pays only for work-related deaths, on the state's benefit schedule. It isn't a substitute for life insurance.
Can my business pay for my life insurance?
Businesses can own and pay for life insurance for some purposes, like key-person or buy-sell coverage. The tax treatment depends on how it's set up. Talk to your CPA, and we'll coordinate with them on the policy side.
My lender asked for life insurance on the loan. Do I need a special policy?
Usually not. A standard term policy can be collaterally assigned to the lender for the loan amount, and anything above that still goes to your family. We'll match the amount and term to what the lender asked for.
Do I need a medical exam?
Often not. Many carriers use accelerated underwriting for healthy applicants and moderate amounts. Larger amounts, or some health histories, still need an exam. We'll tell you up front.
Is Sullivan James the insurance company?
No. Sullivan James is an independent insurance agency in Scottsdale, Arizona. Policies are issued by the carrier, and no coverage is in force until the carrier issues the policy and the first premium is paid.
You insure the trucks. Insure the person who drives the business.
Tell us a little about you. A licensed agent compares several carriers and calls with real prices.
Get my quotesOr call (480) 382-7332 and talk to a licensed agent.
Sullivan James Insurance is an independent insurance agency, not an insurance company. Policies are issued and underwritten by the carrier, and all coverage is subject to underwriting approval, policy terms, exclusions and limitations. No coverage is in force until the carrier issues the policy and the first premium is paid. Riders and their availability vary by carrier and state. This page is general information, not tax, legal or lending advice, and is not an offer of insurance in any state where Sullivan James Insurance is not licensed.