Do you need workers' comp if you're a solo electrician or plumber?
If you are told to send a certificate, you need coverage. That means you need workers' comp. It shows someone else that your business has insurance, even if you work alone. But remember, a certificate is just proof — it does not protect you, the owner.
This article explains exactly what you need to know. You will learn why you might need workers' comp, how to get a certificate, and what it covers. And you can get started in minutes by starting your quote.
Why might someone ask for a workers' comp certificate?
Some customers, landlords, or contractors ask for a certificate before letting you work. They want to know your business has workers' comp. A certificate proves insurance exists. But it does not protect you, the owner. It proves the business has workers' comp.
If you are asked for a certificate, you need a policy to go with it. You cannot show a certificate if you do not have a real policy.
What is workers' comp and why do you need it?
Workers' comp is insurance for people who work for you. If they get hurt on the job, it pays for their medical care and part of their lost income. But on a ghost policy, you, the owner, are not covered.
Some states require workers' comp for certain work. New Mexico, for example, requires it for employers doing work that needs a Construction Industries license, whatever their number of employees. Your state decides if you must have it. You can learn more about class codes if you want to understand how this works.
Do you need it if you work alone?
It depends on your state and the kind of work you do. Some states require it for certain work whatever the number of employees, like New Mexico's construction rule. Your state decides if you need it.
Even if you are not required to have it, some clients will ask for a certificate. If they do, you must get coverage. A certificate proves your business has insurance. And if you get a certificate, you need a policy to go with it.
What is a ghost policy and why do people use it?
A ghost policy is a special kind of workers' comp insurance. It is for people who work alone and need to show a certificate to someone else. A ghost policy proves your business has coverage. But it does NOT protect you, the owner. You reject coverage for yourself when you buy it. It is just for showing others that coverage exists.
A 👻Ghost Policy never covers the owner; if you want coverage for yourself, you need regular workers' comp. You can read more about ghost policies on our blog.
How do you get a certificate?
To get a certificate, you must buy a workers' comp policy. If you work alone, you can get a policy that only proves coverage exists. This is called a 'ghost policy.' But a ghost policy does not cover you, the owner — it is just proof for others. A ghost policy is for the owner only, with no employees and no subcontractors of any kind. Work above 15 feet can't be covered by this program, so if any of your electrical or plumbing work goes that high, you need regular workers' comp.
Ghost policies are good for showing a client that your business has insurance. But they do not help you if you get hurt. If you want coverage for yourself, you need regular workers' comp, not a ghost policy.
Go to start your quote to buy a policy and get a certificate. It takes just a few minutes to get started.
What if you want coverage for yourself?
If you want to be protected when you get hurt, a ghost policy is not the right policy. You reject coverage for yourself when you buy one, so it pays no medical bills or lost wages to you. You need regular workers' comp.
A 👻Ghost Policy never covers the owner; if you want coverage for yourself, you need regular workers' comp. It exists to show proof of coverage to the person who asks for it.
What if you're unsure about your state's rules?
Check your state's website for workers' comp rules. You can also talk to a local insurance agent. But remember, we are not a marketplace. We help you get your own quote here.
If you're still unsure, go to start your quote. Your quote will tell you the price, and your state's workers' compensation office can tell you what your state requires. You can also read more about the basics of a solo business on our blog if you need more information.
