You need one kind of insurance to show a certificate today
You are an electrician. A customer or a client just asked for a certificate. The most common request is for workers' compensation insurance. That is the law in many states for businesses with employees. You are a one-person business. But your state might still want proof that you have coverage. Your checklist has one item: workers' comp insurance.
Ghost policies are a type of workers' comp. They do not cover you, the owner, but they do satisfy most certificate requests. You can get a ghost policy for your business in minutes — start your quote.
Step 1: Know what your state needs
Every state has its own rules about insurance. Some need it for all businesses. Others only need it if you have employees. If you are not sure, start your quote. The quote process will tell you if your state needs workers' comp for your business.
You do not need general liability, cyber, or other types of insurance to show a certificate. Those are different policies. Workers' comp is the only one you need to satisfy most certificate requests.
Step 2: Choose the right type of policy for your business
Ghost policies are made for one-person businesses. They show that your business has insurance. But they do not cover you, the owner. You might still need a policy that includes you. If you do, you can choose an owner inclusion election when you get your quote. This adds you to the policy, but it costs more.
Ask yourself: Are you working in dangerous places or handling heavy equipment? If yes, you might want coverage for yourself. You decide what is right for your business.
Step 3: Get your quote and policy documents
To get a ghost policy, you need to start your quote. You will answer a few simple questions about your business. The system will give you a real price for your state and the kind of work you do. You can buy the policy right there.
After you buy, you will get two things: the policy documents and a certificate of insurance (COI). The certificate is what you need to send to the person who asked for it. It shows the name of the insurance company, the dates of coverage, and the type of insurance you have. But it does not show all the rules of the policy. If you need more details, look at the full policy documents.
Step 4: Know what your policy covers and what it does not
A ghost policy covers work-related injuries to any employees you might have. It also satisfies most certificate requests. But it does not cover you, the owner. If you are hurt on the job, the policy will not pay for your medical bills or lost wages.
If you want coverage for yourself, you must choose the owner inclusion election when you get your quote. This adds you to the policy, but it costs more. If you do not choose this, you will not be covered, even if you get hurt doing your job.
Step 5: Keep your certificate and policy documents safe
After you get your policy, you will have two important papers: the policy documents and the certificate of insurance. Keep them in a safe place. You might need to show the certificate again — to a client, a landlord, or a government office.
The policy documents have all the rules of your insurance. Read them carefully. They will tell you what is covered, what is not, and what you need to do if you are hurt on the job. If you need help, look at the policy documents or start your quote for more information.
Bonus: What happens if you do not have insurance?
If your state needs workers' comp and you do not have it, you could be fined. Some states take away your license to work. Others charge you money. You do not want to get into trouble. A ghost policy is the easiest way to stay on the right side of the law.
Even if your state does not need workers' comp, a certificate can help you win jobs. Some clients and landlords only work with businesses that have insurance. Having a certificate can help you get more work and grow your business.
