Ghost WC for Contractors & 1099 Workers

Ghost Workers' Comp for Contractors & 1099 Workers

Independent contractors, sole proprietors, and 1099 workers — this policy was built for you. Get the workers' comp certificate your license and GCs require without the complexity of a full payroll policy.

Get Contractor Quote844-967-5247

Why Contractors Need Ghost WC

Four real-world situations where contractors need a WC certificate but have no employees.

GC Job Site Requirements

Most general contractors require all subs to carry their own workers' comp before stepping on a job site. Without a certificate, you can't work the job — regardless of your skill level.

State Contractor Licensing

Most states require proof of workers' compensation insurance to issue or renew a contractor's license. A ghost policy generates the certificate that satisfies this requirement.

Bid on Commercial Projects

Commercial projects, government contracts, and larger residential jobs typically require proof of WC as part of the bid package. A ghost COI lets you compete.

Personal Liability Protection

While the ghost policy doesn't cover the owner for injuries, having a policy in place demonstrates professionalism and protects you from being swept into a GC's coverage at a higher rate.

Who Qualifies for Owner Exclusion?

Exclusion eligibility varies by business entity type. Here's how each structure works.

Entity Type
Exclusion Available
How to Exclude
Notes
Sole Proprietor
Yes — in most states
File exclusion election form with state or carrier
Simplest structure. Owner exclusion is standard for WC purposes in almost all states.
Single-Member LLC
Yes
Owner election on policy application
LLC members are generally treated like sole proprietors for WC exclusion purposes.
Multi-Member LLC
Yes — varies by state
Each member may file separately
Some states limit how many members can be excluded. Typically 2–4 officers/members.
Partnership
Yes — in many states
Partners listed on exclusion endorsement
General partners are typically eligible. Limited partners may vary by state law.
S-Corp / C-Corp Officers
Yes — officer exclusions
Executive officer exclusion endorsement
Up to 4 officers can typically be excluded. Forms filed with carrier or state.
State-by-State Breakdown

Contractor WC Rules by State

Workers' comp exclusion rules vary significantly by state. Here are the key rules for five of the largest contractor markets.

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Florida (FL)

DWC Form 250.201

Sole proprietors and partners are automatically exempt from WC. To formally exclude yourself and get a certificate, you must file a Notice of Election of Exemption with the Florida Division of Workers' Compensation. LLC members with ≤10% ownership cannot be excluded.

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Texas (TX)

No state form required

Texas is unique — WC is not mandatory for most private employers. Employers can be 'non-subscribers.' However, contractors working on public projects or for GCs that require WC must carry coverage. Ghost policies are widely used in TX to satisfy these contractual requirements.

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California (CA)

CSLB requires WC for license

All employers must carry WC in California. Sole proprietors and partners are excluded by statute, but must carry coverage if performing work requiring a contractor's license. Ghost policies are used when the license requires proof of WC but the owner has no employees.

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North Carolina (NC)

NC DOL WC Division

WC is required for businesses with 3 or more employees. Sole proprietors, LLC members, and partners are excluded by default. Many contractors purchase ghost policies voluntarily because GCs in NC increasingly require WC certs from all subs.

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Georgia (GA)

State Board of Workers' Comp

WC is required for businesses with 3+ employees. Sole proprietors and partners are exempt but can elect to be covered. Ghost policies satisfy GC requirements and are commonly used in the Atlanta metro construction market.

Rules for all 47 eligible states available on request. Call 844-967-5247 for state-specific guidance.

How to Get a Certificate for Your GC

Four steps to get your COI delivered with the GC's info already on it.

01

Purchase Your Ghost Policy

Complete our online application. Select your state, trade, and enter the GC's info as the certificate holder.

02

Request the GC Be Listed

When applying, enter the general contractor's legal name and address in the 'Certificate Holder' field. This makes them the named holder on your COI.

03

Additional Insured (If Required)

Some GCs want to be listed as 'additional insured' — not just certificate holder. This requires an endorsement. Ask us if your GC requires AI status.

04

Download & Deliver

Your ACORD 25 certificate is emailed to you and can be forwarded to your GC. We can also email directly to your GC upon request.

1099 Subcontractor Considerations

Ghost Policy + 1099 Subs

If you hire 1099 subcontractors while holding a ghost policy, here's what you need to know to stay compliant and avoid surprise audit charges:

1099 subs are not employees — you generally don't owe WC premium on their payments
However, subs WITHOUT their own WC may be pulled into your audit as 'uninsured subs'
Always collect a certificate of insurance from every 1099 sub before work begins
Some states have strict independent contractor tests — document the sub relationship carefully
Use written contractor agreements that establish the independent nature of the relationship
Your ghost policy does NOT cover 1099 subs — they need their own policies

Contractor Ghost Coverage FAQ

Answers to the most common questions from contractors and 1099 workers.

Get Your Contractor Ghost Policy Today

Instant quote. Same-day certificate. Built for independent contractors in all 47 eligible states.

Get Instant Contractor QuoteCall 844-967-5247