Workers' Comp for Handymen: What You Actually Need

You need workers' comp if someone asks you for a certificate

Do you do handyman work, like fixing things around houses? Maybe you work alone, not with a team. If someone asks you for a certificate of insurance, you need workers' comp. It proves that your business has coverage. This is not for you, the owner, by default. But it shows the coverage exists, even if you're alone. This kind of policy is called a ghost policy.

What is a ghost policy?

A ghost policy is when you buy workers' comp for your business, but you're the only person working. No employees are covered. The policy is there to show you have insurance. It helps you send a certificate to someone who asked for it. But the policy does NOT cover you, the owner, if you get hurt. That's important to know. If you want to be covered, you have to choose to include yourself. That option costs extra.

Who might ask you for a certificate?

Certificates of insurance are often asked for by property managers or home owners. For example, if you're doing a job at a house or apartment, the owner might want to see proof you have coverage. This is not about you getting hurt. It's about showing that if someone working for you gets hurt, the insurance can help. If you're alone, the certificate still shows you have a policy. It's just not for you, by default.

What does a workers' comp policy actually cover?

Workers' comp insurance covers medical bills and lost wages if someone who works for you gets hurt while doing their job. If you're working alone and no one else works for you, then the policy is there to show coverage exists. It does not cover you, the owner, unless you choose to include yourself. That choice is made when you get your quote. It costs more to include yourself in the coverage.

What happens if you hire someone?

If you hire a helper or start working with another person, the rules change. You now have an employee. In most states, you must have workers' comp coverage for them. You can't work with someone and not have coverage for them. The policy will now cover them if they get hurt. It will also cover you if you choose to include yourself. That choice is made when you get your quote. It costs more to include yourself in the coverage.

How do you get a workers' comp quote?

To get a quote for workers' comp, you tell the insurance company what kind of work you do and where you work. This helps them give you the right price. You can choose to include yourself in the coverage or not. The quote will show the real price for your situation. If you're working alone, the price is lower. If you hire someone, the price goes up. The quote gives you the real price for your state and the work you do. Get your quote in minutes.

What about other kinds of insurance?

Workers' comp is not the same as general liability. General liability would cover if someone else gets hurt because of your work, like if a tool falls and hits them. But workers' comp only covers injuries to people who work for you. If you need general liability, you have to get a separate policy. This site only helps with workers' comp. Learn more about ghost policies.

Why is it important to know about owner inclusion?

If you get hurt at work, you need to be covered by the policy. But by default, you are not covered. To be covered, you have to choose to include yourself. That's called an owner inclusion election. It costs more to add yourself to the coverage. If you don't choose it, the policy does not help you if you get hurt. So it's important to know what you're choosing when you get your quote. Learn more about certificates of insurance.