What is minimum premium workers’ comp?

A minimum premium policy is basically a type of affordable workers’ comp insurance.

The minimum premium is the least amount of money that you are required to pay on a policy, even if something happens and you decide you don’t need workers’ compensation anymore. That’s how the insurance company can make sure they can cover the costs of underwriting and administrative fees.

It’s basically the minimum price that the insurance company and/or state will charge a business owner before factoring any payroll into the price. (Workers’ comp prices are largely based on payroll.) The minimum premium is usually based on the lowest rate for your profession per state, which is commonly $750.

A workers’ comp ghost policy is a popular type of minimum premium policy designed for one-person businesses who exclude themselves from coverage, as most minimum premium policies provide little to no coverage at all.

Learn more about workers’ comp insurance cost factors.

Ask about our minimum premium + accident policy package

Solo X includes 24-hour accident coverage, and it’s still less expensive than the state assigned risk plans. Apply Now

Solo X

Solo X is a minimum premium workers’ comp policy combined with a 24 hour Accident Policy for one-person businesses to purchase a workers’ compensation policy. Need a Certificate of Insurance but don’t want to pay an arm and a leg? Solo X is less money than most state assigned risk plans. Who is it for? Solo X is for sole proprietors and other one person businesses with no employees, but not all classes of business are eligible.

Owner excluded

The owner is excluded from workers’ compensation coverage. That’s why this program is great for those who are required to show a Certificate of Insurance for a job, but who don’t want to pay the additional premium for extra protection.

Speed

We provide quick quotes so you can know what you’re working with as soon as possible.

Immediate coverage

When applying for a minimum premium workers’ comp policy, you typically have to wait a few days to see if your application is approved by the insurance carrier. We provide immediate coverage so you don’t have to wait.

Helps you get hired

Many hiring parties require those working for them to have their own insurance. But not everyone has the capital to pay for expensive insurance coverage. Solo X provides you with proof of insurance without breaking the bank, so you can get to work faster.

Assigned Risk Plan vs Solo X

Before our program, businesses with no employees looking for workers’ comp insurance would have to resort to the Assigned Risk Plan, because many large insurance carriers would turn away such small businesses. However, our program offers better prices and greater reliability.

Why Solo X is better than the Assigned Risk Plan

Greater stability

Using the Assigned Risk Plan is a hassle for several reasons. There is no stability with their insurance providers. If you were to purchase insurance with them, you and your agent would have to rewrite your insurance policy every two to three years due to carrier turnover. The relationships with our insurance providers are strong, giving you the security you need.

Less hassle

Unlike the Assigned Risk Plan, Solo X does not require a mid-term audit. This is a nice perk, because mid-term audits can be a flat-out hassle. Our product only requires a yearly online audit so you can save your time, money, and energy focusing on work–not unnecessary audits.

More coverage

Minimum premium plans typically exclude the owner from workers’ comp coverage. But with our program, that doesn’t mean you’ll be without protection. Solo X includes an accident policy with 24-hour accident protection. That means you will have some security if something happens on the job.

Solo I

If you want to be included as the owner for workers’ compensation coverage, you can do that with Solo I. Solo I is also a minimum premium policy but it includes the owner in coverage. It is always recommended to include yourself for work comp coverage if you work in a dangerous industry, like construction.

If you don’t have a team working for you and you are looking to save, minimum premium policies are a great fit for you. Regardless of whether or not you choose to include or exclude yourself in coverage, you’ll still receive your Certificate of Insurance.