Ghost Policy vs. Regular Workers' Comp
You got a message saying, 'Send me a certificate.' You don’t have employees. You need coverage. You may have heard of 'ghost policies.' This is what they are and how they are different from regular workers' comp.
A ghost policy is a type of workers' comp. It covers your business. It does not cover you, the owner. Regular workers' comp includes coverage for employees. Ghost policy is for businesses with no employees. Regular workers' comp is for businesses with employees.
What Ghost Policies Cover
A ghost policy proves your business has workers' comp. This is what someone else needs to see. But the policy does not cover you. If you get hurt at work, it does not pay for your medical bills. It only covers the business. It helps you give a certificate when asked.
Ghost policies are useful for businesses that need to show coverage for legal or customer reasons. But remember: you, the owner, are not covered. You need a separate policy or election if you want coverage for yourself. This is called an owner inclusion election. It costs extra but covers you if you get hurt.
What Regular Workers' Comp Covers
Regular workers' comp covers employees. If an employee gets hurt at work, the policy helps pay for their medical bills and lost wages. It also protects the business from being sued by the employee. This type of policy is needed in most states if you have employees.
Regular workers' comp includes more coverage than a ghost policy. It covers more people and more situations. But it is not right for businesses with no employees. That’s where ghost policies come in. Ghost policies are for businesses that must prove coverage but have no workers to cover.
Why You Might Need a Ghost Policy
You may need a ghost policy if someone asks for proof of workers' comp and you have no employees. This could happen when you join a project, sign a contractor agreement, or work at a job site. The person asking wants to know your business is covered.
A ghost policy gives that proof. It shows your business is covered, even though you are the only person working. It is a quick way to get a certificate and meet the request. But if you want coverage for yourself, you need to choose the owner inclusion option when you get your quote. You can learn more about what people need in our certificates guide.
When a Ghost Policy Is Not Right for You
A ghost policy is not right if you want coverage for yourself. If you get hurt at work, it does not help you. You need to choose an owner inclusion election if you want to be covered. This costs more, but it gives you the protection you need.
Also, a ghost policy may not be needed if the person asking for the certificate says you don’t have to have workers' comp. Requirements vary by who is asking. Always check with them to be sure. If they just want to see the business has coverage, a ghost policy is perfect. You can find more on this in our ghost policy section.
How to Decide Between Ghost Policy and Regular Workers' Comp
Ask yourself: do I have employees? If yes, you need regular workers' comp. If no, a ghost policy may be right for you. But remember: ghost policy does not cover you. If you want coverage for yourself, you need to choose an owner inclusion election.
Look at what the person asking for the certificate needs. They may only need proof of coverage for the business. A ghost policy gives that. But if they need more, you may need a different policy. Always read what they are asking for — sometimes they want coverage for you, the owner, too. You can read more in our 'Do I Need It?' section.
How to Get Coverage Today
You don’t need to wait. You can get your quote in minutes. Get your quote. You will choose the right policy for your business. You can also choose if you want coverage for yourself.
Ghost policies and regular workers' comp are both types of coverage. They serve different needs. The right choice depends on your business and what is asked of you. Your state decides what is required — always check with them, or with the person asking for the certificate.
