What Is a Ghost Policy? Workers’ Comp for Contractors With No Employees
5 min read · Updated June 20, 2026
You’re a one-person operation. You don’t legally need workers’ comp on yourself — but the general contractor won’t let you on the job without a certificate showing it. That’s the exact problem a ghost policy solves. Here’s what it actually is.
What a ghost policy is
A ghost policy is a workers’ comp policy written for a business with no employees, where the owner is excluded from coverage. It’s priced at or near the state minimum premium because, on paper, there’s no payroll to insure. Its real purpose isn’t protection — it’s producing a certificate of insurance you can hand to clients and GCs who require one.
Who it’s for
Sole proprietors, single-member LLCs, and independent subs who work for general contractors that demand a COI with a workers’ comp line — but who have no employees of their own to cover.
What it covers (and what it doesn’t)
This is the part people miss: a ghost policy generally does not cover the owner. If you’re injured on the job, a ghost policy typically pays nothing for you. It satisfies a contractual requirement; it is not personal injury protection. If you want coverage on yourself, you have to elect to be included — which adds payroll and cost.
The audit angle
A ghost policy still gets audited, and the audit assumes you had no employees. Hire a helper or pay a sub during the year and that assumption breaks — the auditor can add that payroll and bill you for it. A ghost policy only stays cheap if it stays a one-person operation. The moment you bring on labor, you need real coverage. How the audit works →
Ghost policy vs. exemption
Both let a solo operator work without insuring themselves, but they’re different instruments. An exemption certificate is the state excusing you from carrying coverage; a ghost policy is an actual (minimal) policy that generates a COI. Which a GC accepts varies — some want a COI specifically, which only the policy provides.
If you’re the one hiring subs
Flip it around: when you require COIs from your subs, a ghost policy in their name still shows a valid WC line — but confirm it covers the work and dates. Check any sub’s certificate free →
General information for contractors, not insurance advice. Ghost-policy availability, owner inclusion/exclusion, and acceptance vary by state and carrier — confirm with your agent.
Frequently asked questions
Does a ghost policy cover me if I get hurt on the job?
Usually no. A ghost policy excludes the owner, so it typically pays nothing for your own injury. To be covered yourself, you must elect to be included, which adds payroll and premium.
Will a ghost policy satisfy a general contractor’s insurance requirement?
Often yes — it produces a certificate of insurance showing an active workers’ comp policy, which is what most GCs require. Confirm the GC accepts a ghost/owner-excluded policy, since some have stricter rules.
What happens if I hire a helper while on a ghost policy?
The policy assumes no employees, so at audit the carrier can add that person’s pay as payroll and bill you. Once you take on labor, you generally need a standard policy with coverage, not a ghost policy.
See your own exposure — free
Two free tools, no signup: estimate your audit surprise, and check whether your subs’ COIs actually protect you.
Related guides
Do I Need Workers’ Comp If I Have No Employees? (It’s More Complicated Than Yes or No)
If you’re a one-person shop you may not be required to carry workers’ comp — but you can still be charged for it. Here’s when you need it, when you don’t, and why your GC asks anyway.
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Taking your crew across state lines? Your home-state policy may not cover the job. Here’s how multi-state workers’ comp works and the gaps to close first.
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