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. You reject coverage for yourself when you buy it. That's important to know before you buy.

Some people think a ghost policy also covers the owner, but it does not. It pays no medical or wage benefits to you. It's made for a business with no employees, and it does not cover the owner. If you want cover for yourself, you need regular workers' comp, not a ghost policy.

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.

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.

If you want cover for yourself

A 👻Ghost Policy never covers the owner; if you want coverage for yourself, you need regular workers' comp. You reject coverage for yourself when you buy one, and that is what makes it a ghost policy. If you want your business insurance to pay when you get hurt, you need regular workers' comp, not a ghost policy.

Not everyone needs this. If you're the only one in your business, and you don't do work that could hurt you, a ghost policy may be all you need to show a client. But if you want protection for yourself, a ghost policy is not the way to get it.

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, and its workers' comp part has a box that shows the owner is excluded.

The person who asks for the certificate usually just wants to know your business has insurance. They may not look at every box, so they might not notice 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 other insurance for yourself, because a ghost policy will not pay you.

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 to see the real price of a ghost policy.

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 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.

Other limits to know before you buy

A ghost policy is for the owner only. It is for a business with no employees and no subcontractors of any kind, even subs who carry their own insurance. If anyone else works for you, you need regular workers' comp, not a ghost policy. Work above 15 feet is an automatic decline, and this program can't cover it. The premium is fully earned: once the policy is issued, there is no refund. The one exception is a full refund if underwriting finds that your application is false before the policy is issued.