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What is a workers’ comp ghost policy?

What contractors who work alone should know before requesting proof of coverage.

Small business team collaborating in an office

What people mean by “ghost policy”

It’s an industry nickname for a workers’ comp policy issued to a qualifying business with no employees and no reported employee payroll. A contractor may ask for one to satisfy a licensing or contract requirement. Ask what proof the licensing board or customer actually needs.

Does it cover you as the owner?

Ask your agent to confirm whether you are included or excluded. The answer depends on your eligibility and the policy elections. Getting a certificate alone doesn’t tell you whether you are personally covered.

What happens when you hire help?

Tell your agent when you hire an employee or start using subcontractors. Keep invoices and certificates, and report payroll and other exposures that apply. An insurer can audit a policy even if you started the year with no employees.

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