Ghost Policy for Contractors
What a ghost policy means (plain English)
A ghost policy is typically a workers’ comp setup used when you need workers’ comp proof, but you have no employees (or no reportable payroll), and the request is driven by contract or onboarding.
A “ghost policy” usually refers to a workers’ compensation policy that:
- Is issued to the business entity so you can provide proof of workers’ comp when requested
- Often involves little to no payroll (depending on your situation and what’s allowed)
- Still requires accurate information and can still involve audits and documentation
This is not legal advice. Requirements vary by contract, project, and carrier.
Mini definitions (quick and extractable)
- COI (Certificate of Insurance): Proof of coverage and limits at a point in time.
- Audit: A review used to confirm payroll and classifications so the carrier can true-up premium.
- Class code: A classification that affects how payroll is rated on workers’ comp.
Related reading:
When ghost policies are commonly requested
Most ghost policy conversations start because someone upstream requires workers’ comp proof to bid, onboard, or get paid.
You may run into a ghost policy request when:
- A general contractor says “we need workers’ comp on file” before releasing work
- A property manager or vendor portal will not approve onboarding without WC proof
- A project packet requires WC documentation even for small subs
- You are asked for a COI showing workers’ comp even though you are owner-only
Important: “requested” does not always mean “required by law.” It is often a contract and compliance requirement. Avoid assumptions and verify what the packet actually says.
Who should not use a ghost policy
If you have employees, you usually need a standard workers’ comp structure, not a workaround.
A ghost policy is generally not appropriate if:
- You have employees (including part-time field labor)
- Your business is paying reportable payroll that should be rated
- You are trying to solve a compliance issue by under-reporting payroll or scope
- You cannot support your workforce structure with clean documentation
If you have employees or growing payroll, start with the standard WC path:
Risks and common misunderstandings (read this before you request one)
“A ghost policy covers me if I get hurt”
Workers’ comp benefits and who is covered can vary by structure, elections, and state rules. Do not assume owner coverage or benefits. If coverage for owners matters to you, discuss it explicitly and get it confirmed in writing.
“If the portal accepts my COI, I’m good”
A portal approval is not the same as correct coverage. A COI is proof at a point in time. It does not rewrite your policy.
Audits can still happen
Workers’ comp policies are often audited. If your records do not match what was represented, you can face adjustments.
Class code and scope mismatches
If your described operations do not match what you actually do, underwriting friction and audit problems follow.
Subcontractor paperwork can become the real issue
Sometimes the upstream party is really trying to confirm your subcontractor compliance, not just your workers’ comp.
Ghost policy content should be handled carefully and with licensed guidance.
How compliance usually works (COIs and documentation)
What to verify before you request anything
- Is the requirement workers’ comp proof, or are they also requesting endorsements (often on GL)?
- Are they requesting coverage for employees or simply proof of a policy on file?
- Do they require the job address on the COI?
- Do they require specific wording, or is standard ACORD acceptable?
COI request checklist (to avoid rejections)
Provide all of the following:
- Certificate holder legal name and mailing address
- Job name and job site address (if required)
- Deadline (and whether it is “same-day needed”)
- Send-to emails (and any CCs)
- Upload or paste the requirement page from the packet (highly recommended)
Fast lane routing
- Existing clients: Request a COI →
- New to us: Get a Quote →
What affects pricing and eligibility
Workers’ comp costs are driven by payroll, class codes, operations, and claims history, even when the goal is compliance proof.
Underwriters may evaluate:
- Your trade and operations (roofing vs GC vs plumbing risk patterns)
- Years in business and experience
- Any prior workers’ comp history and claims
- Workforce structure (employees, subs, owner-only)
- Class codes and audit expectations
- Coverage start date and urgency
Related: Workers’ Comp fundamentals →
Fast quote checklist for workers’ comp (contractors)
A clean submission reduces underwriting questions and lowers the chance of audit surprises later.
Have this ready (ranges are fine to start):
Business basics
- State where you operate (initial focus: California and Texas)
- Trade and scope (roofing, GC, plumbing, or closest match)
- Years in business
- Contact info for the person who can answer underwriting questions quickly
Payroll and workforce
- Estimated payroll range by role (field labor vs office)
- Employee count and job roles
- Subcontractor usage (yes/no and rough percent of labor)
Classification and operations detail
- What work is performed most often (repairs vs new installs, residential vs commercial)
- Any higher-risk operations relevant to your trade (roof heights/hot work, excavation, etc.)
- Prior workers’ comp carrier (if any) and any gaps or cancellations
- Claims in the last 3–5 years (yes/no and short details)
If a bid packet is involved
- Required proof of workers’ comp and any specific wording
- Deadline and start date
- Upload the requirement page if possible
Get a Quote →
Fast quote checklist (ghost policy conversations)
The fastest quotes happen when you clearly explain your workforce structure and upload the requirement page that triggered the request.
Have this ready (rough ranges are fine to start):
- State where you operate (initial focus: California and Texas)
- Trade and scope (roofing, general contractor, plumbing, or closest match)
- Years in business
- Workforce structure (owner-only vs employees)
- Subcontractor usage (yes/no and rough percent)
- Revenue range
- Payroll details (if any)
- Claims in the last 3–5 years (yes/no and short details)
- Upload the bid packet requirement page or portal screenshot if available
CTA: Get a Quote →
FAQs about ghost policies
What is a ghost policy for contractors?
A ghost policy is typically a workers’ comp policy setup used in certain owner-only scenarios to provide proof of workers’ comp when required by a contract or onboarding process.
Why would a GC or property manager ask for a ghost policy?
They often want workers’ comp proof on file to reduce their risk and meet their own compliance rules, especially before onboarding you or releasing work.
Is a ghost policy the same as workers’ comp insurance?
It is tied to workers’ comp, but the structure and applicability depend on your workforce, payroll, and what is allowed by the carrier and state rules.
If I have no employees, do I still need workers’ comp?
Sometimes you are not legally required, but contracts and vendor portals often still require proof. Requirements vary by contract, project, and carrier.
Will a ghost policy cover me personally if I get injured?
Do not assume that. Owner coverage and benefits depend on elections, policy structure, and state rules. Confirm what applies to your specific situation in writing.
Can a ghost policy be audited?
Workers’ comp policies are often audited. Keep clean records and be accurate about payroll and workforce structure.
What information makes a ghost policy quote faster?
A clear statement of owner-only vs employees, subcontractor usage, revenue range, any payroll, claims history, and the requirement page that triggered the request.
Is a COI enough to satisfy the requirement?
Sometimes, but not always. A COI is proof at a point in time. If the packet requires specific wording or documentation, you may need additional documents.
What if the vendor portal rejects my COI?
Most rejections come from certificate holder detail errors, missing job address, missing policy dates, or mismatched requirement language. Send the rejection note and the requirement page so it can be corrected quickly.
Is a ghost policy a “cheap workaround”?
It should not be treated that way. Misrepresenting payroll or workforce structure can create audit and compliance problems. Use licensed guidance.
Does a ghost policy replace general liability?
No. Many bids require both workers’ comp and general liability, plus endorsements on the liability side.
What if I start hiring employees later?
Tell your broker immediately. Your workers’ comp setup may need to change to match actual payroll and operations.
