The basics

What is a ghost policy?

Some self-employed business owners with no employees choose to get a “ghost policy” in order to meet the insurance requirement of persons they work for. It’s a type of workers’ compensation insurance policy where the owner excludes themselves from coverage, but can still provide a Certificate of Insurance to those who request one.

We offer a ghost policy + accident policy package

You’ll get 24-hour accident coverage, and guess what? It’s still cheaper than most ghost policies, including the state assigned risk plans. Get a quote.

How does a ghost policy work, exactly?

Only a one-person business owner with no employees can buy a ghost policy. It’s a minimum premium workers’ comp policy, and the owner is “excluded” from coverage. Because the owner can’t have any employees with this kind of policy, it covers no one, or you could say it covers a ghost.

The premium (price) of a workers’ comp policy is based on your payroll for the year.

Since there is no payroll, it’s the cheapest kind of workers’ compensation policy you can get. It’s the “minimum premium”, which is typically whatever the minimum premium charged by the insurance company is.

A ghost policy lasts for a period of one year.

The same is true with a workers’ comp policy. Once the policy is purchased, a Certificate of Insurance can be issued to requesting parties.

A ghost policy is usually issued to a sole proprietor, partnership, one-person LLC or one-person S-corp, as long as the state allows the owner to be excluded from coverage under the workers’ compensation policy and there are no employees to generate ratable payroll.

Who is ghost insurance for?

Ghost policies are designed for self-employed business owners who:

  • Have no employees or subcontractors
  • Have no plans to hire employees or subcontractors during the policy period
  • Have no payroll (besides the owner/s)

Additional conditions

  • The business owner understands that the policy offers no coverage or tangible benefits to anyone (that’s why it’s called a “ghost” policy).
  • The business owner does not plan to hire employees or subcontractors during the policy period, and if they do they will notify their insurance agent.


The policy owner will be audited annually to ensure they’re following these strict guidelines. If it’s determined the guidelines are not being met, an additional premium may be charged and policy cancellation may apply.

The coverage

Ghost policies don’t provide coverage, so why would I want one?

The biggest reason contractors get ghost policies is to meet state requirements or to provide a Certificate of Insurance to a client or general contractor.

There are a lot of smaller independent contractors and subcontractors without employees who don’t want to pay higher premiums to cover themselves with workers’ comp.

Ghost policies are great for people who know they won’t be hiring contractors and need to show proof of insurance. We work with a partner who provides ease of doing business, low rates, and stable coverage.

Proof of insurance

The reason people buy ghost policies

The reason most contractors buy a ghost policy is to be able to provide a Certificate of Insurance to potential clients. A lot of employers, especially in construction, require proof of insurance as a job qualification.

Of course, if you can spend the extra money, we always recommend a standard workers’ compensation policy with benefits.  The main reason is that you’ll actually have coverage provided to you. There are often payment plans that you can qualify for. Ask one of our experts.

How do I get a ghost policy?

We offer a ghost policy plan that includes an accident policy, and it’s less expensive than the assigned risk plan in most states (which is really cheap). What makes this ghost policy option so great is that it comes with an accident policy, which gives you 24-hour coverage.

It’s important to understand that this type of policy is different than workers’ compensation benefits because there are coverage limits, but unlike a regular ghost policy, you’ll have some insurance coverage if you get hurt.

Get a ghost policy quote.

Price Factors

How much does a ghost policy cost?

Most ghost policies are written through the state insurance fund, otherwise known as the assigned risk plan.
However, we have access to a cheaper ghost policy combined with an accident policy – that’s still less than the assigned risk plan in most states.

It’s as cheap as it gets.

A minimum premium policy is basically a type of workers’ comp policy that is the cheapest possible premium for a policy, which varies by state.

Each state has a minimum premium (price), and then usually the workers’ compensation coverage has its own additional price (determined by payroll) which is added on top. That’s what makes a ghost policy so cheap – there’s no coverage.