Is a ghost workers comp policy legal?

Yes. Ghost workers' compensation policies are a legitimate, state-recognized insurance product. State contractor licensing boards accept them as valid proof of coverage. The owner exclusion is a standard endorsement available in all non-monopolistic states.

Do I need employees for a ghost WC policy?

No. That's the entire point of a ghost policy. It's designed for business owners with zero employees (or who exclude themselves). You get a valid certificate of insurance without having any payroll to insure.

What's the difference between a ghost policy and a regular workers' comp policy?

A regular WC policy covers employees' injuries. A ghost policy is issued for a business where the owner excludes themselves (and has no other employees), meaning no one is actually covered under the policy — but a valid certificate of insurance is still generated, satisfying licensing and contractual requirements.

Which states don't allow ghost workers comp policies?

Monopolistic states — North Dakota, Ohio, Washington, and Wyoming — require all employers to purchase workers' comp through the state fund and do not permit private ghost policies. All other 47 states allow privately placed ghost WC policies.

How much does a ghost workers comp policy cost?

Ghost WC premiums typically range from $800 to $2,500 per year. The exact cost depends on your state, your trade's NCCI class code, and the carrier's minimum premium for your risk category. Get an instant quote at the top of this page — it takes under 90 seconds.

Ghost Workers' Comp Policy Guide

What Is a Ghost Workers' Comp Policy?

A ghost policy gives sole proprietors and owner-only businesses the workers' compensation certificate they need — without requiring any employees. Legal, fast, and available in 47 states.

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The Simple Definition

Workers' Comp Coverage Without the Payroll

A ghost workers' compensation policy is a standard workers' comp policy in which the owner files an exclusion endorsement — effectively removing themselves (and all non-existent employees) from the covered persons list. Because there is no one on payroll, the policy generates no actual medical or indemnity exposure for the carrier, making premiums extremely low.

Despite covering no one, the policy is still a fully valid insurance contract issued by a licensed carrier. It generates a real ACORD 25 Certificate of Insurance — the document that contractor licensing boards, general contractors, and property owners require as proof of coverage before allowing you to work.

Key Characteristics

Issued by an A-rated, state-licensed carrier
Owner excludes themselves via exclusion endorsement
Zero payroll reported — zero additional premium at audit
Generates a valid ACORD 25 Certificate of Insurance
Satisfies state contractor licensing WC requirements
Satisfies GC requirements for subcontractors on job sites
Annual policy term with easy renewal

Who Needs a Ghost WC Policy?

Ghost policies exist to solve a specific problem: you need WC proof but have no employees. Here's who they serve.

Sole Proprietors

Self-employed individuals who operate without employees but must carry a WC certificate to satisfy licensing or client requirements.

Single-Member LLCs

LLC owners with no W-2 employees who need proof of workers' comp to maintain their contractor license.

Owner-Operators

Business owners who do all the work themselves and sub out periodically — but must show WC coverage to win bids.

Subcontractors

1099 subs required by their GC to carry workers' comp before stepping foot on a job site.

License Applicants

Contractors applying for or renewing a state contractor license where WC proof is a required document.

Low-Payroll Businesses

Small businesses with minimal or seasonal payroll who want coverage that scales with their workforce.

How a Ghost Policy Works

Four straightforward steps from policy issuance to audit close-out.

Policy Is Issued

A standard workers' compensation policy is written by an A-rated carrier in your state. The policy lists your business as the insured employer.

Owner Is Excluded

The business owner files an exclusion endorsement (where required by state law), removing themselves from the covered employee list. This is standard and fully legal.

Certificate Is Generated

An ACORD 25 certificate of insurance is issued showing active workers' comp coverage. This satisfies licensing boards, GCs, and project owners.

Zero-Payroll Audit

At policy expiration, the carrier audits actual payroll. Since the owner is excluded and there are no employees, payroll is $0 — no additional premium due.

Premium Cost Factors

What Determines Your Premium?

Ghost policy premiums are modest compared to traditional workers' comp because there is no payroll exposure. However, several factors still influence your annual cost:

State Filed

Each state has its own rate tables. FL and GA typically cost less than NY or CA.

Class Code

NCCI classification codes determine base rates. Low-hazard codes (clerical, landscaping) cost less than roofing or structural steel.

Industry Type

High-risk trades like roofing, demolition, or electrical carry higher base rates per $100 of payroll.

Policy Fees

Ghost policies include minimum premiums and carrier fees, typically ranging from $800 to $2,500 annually.

Coverage Limits

Standard WC limits apply. Higher employer liability limits may be requested by some GCs at slight additional cost.

Typical Ghost Policy Premiums

Estimated annual ranges by trade and state tier (2024 averages):

Clerical / Office Admin$800 – $1,100

Landscaping / Lawn Care$900 – $1,300

Painting (Interior)$1,000 – $1,500

Carpentry / Finish Work$1,100 – $1,600

Electrical (Low Voltage)$1,200 – $1,800

Plumbing$1,300 – $1,900

General Contracting$1,400 – $2,200

Roofing$1,800 – $2,500+

Ranges vary by state. Get your exact quote in 90 seconds.

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State Availability

Available in 47 States

Ghost workers' comp policies are available in all states that allow private workers' compensation carriers — which covers 47 of the 50 U.S. states.

Not Available in Monopolistic States

The following states require all workers' comp to be purchased through a state-run fund. Private ghost policies are not available here:

North Dakota (ND)Ohio (OH)Washington (WA)Wyoming (WY)

If you operate in a monopolistic state, contact your state's workers' comp fund directly (e.g., Ohio BWC, L&I Washington) for owner-exclusion options. For all other states, we can quote and bind your ghost policy today.

Why Choose Ghost Workers Comp Insurance

We're not a generalist agency that happens to sell ghost policies. This is our specialty.

Instant Quoting

Get a real-time quote in under 90 seconds without calling anyone.

A-Rated Carriers

We place policies with financially stable, state-approved carriers.

Ghost Policy Specialists

We focus exclusively on ghost WC — this isn't a sideline product for us.

Same-Day Certificates

Most certificates are delivered the same day you apply and pay.

47-State Coverage

Licensed to write ghost policies in all non-monopolistic states.

Dedicated Support

Real humans available at 844-967-5247 if you ever need help.

Ghost Policy FAQs

Common questions about ghost workers' compensation policies.

Ready to Get Your Ghost Policy?

Complete your application in 90 seconds and get a same-day certificate. No employees required.

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