You build things. You might get hurt. Here's what you need to know.
If you're a carpenter working alone, you might get hurt on the job. You might twist your back. You might cut your hand. Workers' comp helps pay for medical care if that happens to someone who is covered. But a ghost policy does not cover you, the owner. You reject coverage for yourself when you buy it, so the policy pays no medical bills or lost wages to you. The rest of this article is about what you actually need as a carpenter who works alone.
What kinds of injuries happen to carpenters?
Carpenters use tools, climb ladders, and move heavy things. You might hurt your back from lifting. You might cut your hand on a saw. You might fall from a ladder. These are the kinds of injuries that workers' comp helps pay for. But again, it only helps people who are covered. If you are the only person working, a ghost policy does not help you, because you reject coverage for yourself when you buy it. Work above 15 feet can't be covered by this program, so if any of your carpentry goes that high, you need regular workers' comp instead.
Tools like circular saws and nail guns can cause cuts or punctures. Ladders and scaffolds can lead to falls. Reaching and bending can lead to back injuries. These are all real risks when you're building things every day.
Who asks you for proof of coverage?
Some people will ask you for proof that you have workers' comp. This is usually a form called a certificate. If you are working for a school, a government project, or a big company, they might ask for it. They want proof that your business has workers' comp. You need workers' comp to give them the certificate. You can start your quote right now to get one.
General contractors, property managers, and clients often need a certificate. They show it to their own bosses or insurance companies to prove you're covered. Without the certificate, you might not get the job — even if you're good at what you do.
What does the policy actually cover?
Workers' comp helps cover medical bills for work-related injuries. It also helps with lost wages if the person can't work. But a ghost policy does not cover you, the owner. You reject coverage for yourself when you buy it, so if you are the only person working and you get hurt, the policy pays no medical bills or lost wages to you. If you want a policy that pays you when you get hurt, you need regular workers' comp, not a ghost policy. You can get your quote in minutes to see the price.
Workers' comp does not cover injuries that are not tied to the work you do, like an injury at home. It also does not cover lawsuits from people not in the policy. If you're sued, general liability insurance might help — but that’s a different kind of insurance and not what this site offers.
What happens when you hire someone?
If you hire a helper, things change. You are now an employer, and your state might require you to have workers' comp for them. A ghost policy is for the owner only. That means no employees and no subcontractors of any kind, even subs who carry their own insurance or hand you a certificate. If anyone else works for you — an employee, a subcontractor, a 1099 worker, day labor, or a family member who helps — you need regular workers' comp, not a ghost policy.
Your state may have rules about when you must have coverage for employees. Some states require coverage from the first employee. Others require it once you have a set number of employees. Your state's workers' compensation office can tell you what your state requires.
What if you are working with a contractor or a crew?
Even if you are working with other people, you are still responsible for your own coverage. If someone else is your boss, they might carry the policy. But if you are your own boss and no one works for you, you can start your quote for a ghost policy. If anyone on the crew works for you, you need regular workers' comp.
Working with others means more tools, more movement, and more people on the site. It also means more chances for someone to get hurt. If someone who works for you gets injured and is not covered, you might be the one who has to pay. A ghost policy is for the owner only, so it cannot cover them. You need regular workers' comp for anyone who works for you.
How does your state decide what you need?
Each state has its own rules. Most states require workers' comp once a business has employees. In many states that starts with the first employee; others set a number such as three, four or five, and Texas lets most private employers choose. Your state's workers' compensation office can tell you what your state needs. The quote will tell you the real price and the code for your kind of work. The code helps set the price, but it does not change what the policy covers. The coverage is the same no matter what the code is.
Some states, like California, use their own rating bureau to set prices. Others use the NCCI system. Your quote will tell you which code your work is assigned. You can learn more about class codes to understand how they work in your state.
What if you're doing a different kind of carpentry?
Not all carpenters do the same work. If you build cabinets, or fix up homes, or do carpentry for theaters, your state might treat you differently. Some states use different codes for different kinds of carpenters. Work above 15 feet is an automatic decline. Your quote will show the right code for your kind of work.
For example, a stage carpenter might use different tools and face different risks than a home builder. Your quote will use the right code for your work. If you're not sure what you do, you can still get a quote — the system will help you choose the right code based on your answers.
