Ghost Workers Compensation Policy
A ghost workers compensation policy provides legitimate proof of coverage for sole proprietors and owner-operators with no employees. Satisfy licensing boards, general contractor COI requirements, and client demands — without paying for coverage you don't need.
Same-Day COI
Certificate issued at binding
What Is a Ghost Workers Comp Policy?
A ghost workers compensation policy — sometimes called a ghost employee policy or owner-only policy — is a legitimate, carrier-issued workers compensation insurance policy that lists the business owner as the insured but carries no employee payroll. The "ghost" refers to the absence of employees, not any misrepresentation.
These policies are designed specifically for sole proprietors, single-member LLCs, and owner-operators who operate without W-2 employees but must produce a certificate of insurance (COI) to satisfy clients, general contractors, licensing boards, or state regulatory agencies.
Because workers comp premiums are calculated on payroll, and ghost policies have zero payroll, the carrier charges the minimum premium for the applicable class code. Premiums are flat, predictable, and not subject to year-end payroll audits — a significant advantage for sole proprietors managing cash flow.
Satisfies Certificate of Insurance requirements
Name clients, GCs, or licensing boards as certificate holders
No payroll audit at year-end
Flat minimum premium — no surprise bills after the policy period
Covers owner injury on the job
If elected, the owner can be covered for on-the-job injuries
Issued in all competitive states
Available in 46 states — not available in ND, OH, WA, WY
Available for high-hazard trades
Construction, roofing, electrical, plumbing, landscaping and more
Who Needs a Ghost Policy?
Ghost policies serve a broad range of self-employed professionals across industries where proof of workers comp is a prerequisite for doing business.
Sole Proprietors
Owner-operators who run their business without W-2 employees and need a certificate of insurance to satisfy client or licensing requirements.
Independent Contractors
Self-employed tradespeople — electricians, plumbers, roofers, painters — who must show proof of workers comp to be awarded contracts.
Single-Member LLCs
Business owners operating as an LLC with no employees on payroll who still must meet contractual insurance requirements.
Owner-Operators in High-Risk Trades
Construction and specialty trade contractors in industries where general contractors require subcontractor WC certificates before allowing access to a job site.
Real Estate Investors & Landlords
Investors who perform their own maintenance and repairs and need WC documentation for licensing or lender requirements.
Freelancers & Gig Workers
Professionals who work project-to-project and need a certificate of insurance as a prerequisite for platform approval or client onboarding.
How Ghost Policies Work
The process is straightforward — from application to certificate issuance, ghost policies are designed for speed and simplicity.
Application & Classification
You apply for coverage under your specific trade classification code (class code). Class codes determine your rate and are set by NCCI or your state's rating bureau.
Premium Calculation
Because there is no payroll, the premium is set at the minimum premium for your class code and state — typically a flat annual amount with no audit variable.
Policy Issuance & Certificate
Your policy is bound and a certificate of insurance (COI) naming your client or general contractor as the certificate holder is issued — often same day.
Renewal & Reporting
At renewal, you confirm no employees have been added. If you hire W-2 employees at any point, you must notify your carrier immediately to add payroll to the policy.
States & Availability
Ghost workers compensation policies are available in 46 competitive states where private insurance carriers are permitted to write workers comp coverage. Each state has its own minimum premium floors, class code rules, and eligibility criteria.
Ghost policy pricing is driven primarily by the applicable NCCI class code (or state-bureau equivalent). A roofing contractor carries a substantially higher rate than a landscaper or clerical worker — the risk profile of the trade determines the minimum premium.
Monopolistic State Exception
Ghost policies are not available in the four monopolistic workers comp states: North Dakota, Ohio, Washington, and Wyoming. In these states, all employers — including sole proprietors — must purchase coverage directly from the state-operated fund. Private carriers are prohibited from issuing workers comp policies for work performed within these states.
Cost Factors at a Glance
State of Operation
Each state sets its own rate tables and minimum premiums.
NCCI Class Code
Your trade classification determines the base rate per $100 of payroll.
Carrier Underwriting
Carriers may apply credits or surcharges based on loss history.
Policy Limits
Standard Part A limits are statutory; Part B employer liability limits are elected.
Annual vs. Installment
Some carriers offer monthly payment options; annual pay often earns a discount.
Typical Annual Range
$800 – $2,500
Flat premium — no year-end audit surprises
Why Contractors Choose CCA
Contractors Choice Agency is a specialty workers compensation broker focused exclusively on hard-to-place and niche WC risks — including ghost policies across all competitive states.
Ghost Policy Specialists
We've placed thousands of ghost policies across dozens of trade classes and states. We know the carriers, the class codes, and the fastest paths to a bound policy.
Same-Day Binding Available
Most ghost policy applications can be bound and certified the same business day — so you never lose a contract over an insurance delay.
Multi-Carrier Access
We work with multiple admitted and surplus lines carriers, giving us the flexibility to find the right rate and terms for your specific trade and state.
COI Management
We handle certificate of insurance requests on your behalf — add certificate holders, update job-specific COIs, and manage renewals without hassle.
Audit-Free Premium
Ghost policies carry no year-end payroll audit. What you pay at inception is what you pay — period. No retroactive bills, no surprises.
Expert Compliance Guidance
State rules around ghost policies, owner exclusions, and sole proprietor coverage elections vary. Our specialists keep you compliant in every state you work.
Frequently Asked Questions
Everything you need to know about ghost workers compensation policies.
Get Your Ghost Policy Today
Don't lose another contract over missing insurance. Our specialists will bind your ghost workers comp policy and deliver your certificate of insurance — often the same day you apply.