A ghost policy does not cover you, the owner

If you buy a ghost policy, it proves your business has workers' comp insurance. But it does not cover you if you get hurt. That's important to know before you buy.

Some people think a ghost policy also covers the owner, but it does not. It's made for businesses with no employees and no owner coverage. You need a different choice if you want cover for yourself.

What happens if you get hurt and are not covered

If you are not covered by the policy and you get hurt at work, the insurance company does not pay for your medical bills or help you earn money. That means you must pay for everything yourself.

Some people get help from health insurance they bought separately. That's a different policy and has its own rules. Or you might get help from disability insurance, which pays you money if you can't work because of an injury or illness.

But a ghost policy does not help with any of that. It only proves your business has insurance for a client or a landlord who asks for it.

How to get cover for yourself if you need it

If you want your business insurance to cover you when you get hurt, you can choose to add yourself. This is called an owner inclusion election. It costs more, but it gives you cover. You choose this when you get your quote.

Not every business needs this. If you're the only one in your business, and you don't do work that could hurt you, maybe you don't need it. But if you do, you can choose it. Just know it costs more and is a separate choice.

You can also buy health insurance or disability insurance for yourself. These are separate from your business insurance and might help you if you get hurt. But they are not the same as being covered by your business policy.

What a certificate of insurance shows and hides

If you need to show someone you have insurance, you send them a certificate of insurance (COI). A ghost policy COI shows the name of the insurance company, the policy number, the dates, and the coverage types. It shows you have workers' comp insurance, but it does not say anything about the owner being covered.

The person who asks for the certificate usually just wants to know your business has insurance. They do not read the whole policy. So they might not know the owner is not covered. But if they ask, you need to tell them the truth. Your policy does not cover you, the owner.

Learn more about certificates of insurance.

How to decide if you need more cover

Ask yourself: Do I do work that could hurt me? Do I want insurance to pay for my medical bills if I get hurt? If yes, you need to look into adding yourself to the policy or buying other insurance for yourself.

Also, think about who might ask for a certificate. If it's a big company or a landlord, they might not care if you are covered. But if it's someone who asks questions, you need to be ready to explain what your policy does and does not do.

There is no one-size-fits-all answer. It depends on your work, your risk, and what you need. Get your quote and talk to a carrier to see what choices you have.

Other ways to fill the coverage gap

Some people buy a policy that covers the owner from the start. That's not a ghost policy. It's a different kind of workers' comp policy. It costs more, but it gives full cover for the business and the owner.

Others choose to buy health insurance or disability insurance to cover their personal needs. These policies are not the same as business insurance, but they can help you if you get hurt or sick. They are separate and have their own rules.

Some people also choose to work with an adviser to build a full coverage plan. They look at all the risks and decide what policies to buy. This is not something we offer, but it's an option for those who want more help.