A ghost policy is a workers' compensation policy structure sometimes requested for owner-only contractors who must show proof of workers' comp for a contract or bid. It does not cover the owner for injury; it only places a workers' comp policy on file. Requirements vary by contract, project, and carrier, and it is not right for every contractor. As ContractorsInsured.net (CA Lic #6015321 / TX Lic #3305690), we set up ghost policies plus the general liability most packets also require for California and Texas contractors and issue the certificate right after binding.
No policy yet but a GC wants proof? We set up a ghost policy plus the $1M general liability most packets also require, bind, and issue the certificate right after. Already covered? Send the certificate holder details and endorsement wording and we match it.
What a ghost policy means (plain English)
- It is issued to the business entity so you can provide proof of workers' comp when requested.
- It often involves little to no payroll, depending on your situation and what is allowed.
- It still requires accurate information and can still involve audits and documentation.
Mini definitions
COI: 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. See workers' compensation, COI basics, premium audits, and contractor class codes.
When ghost policies are commonly requested
- A general contractor says they 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, so verify what the packet actually says.
Who should not use a ghost policy
A ghost policy is generally not appropriate if you have employees (including part-time field labor), or your business is paying reportable payroll that should be covered properly. In those cases, a standard workers' compensation policy is the right structure, and trying to use a ghost policy can create audit and coverage problems.
Risks and common misunderstandings
A ghost policy covers me if I get hurt
It does not. It places a policy on file for proof; it is not injury coverage for the owner.
If the portal accepts my COI, I am good
Not always. Acceptance does not change what the policy actually does or what an audit may find.
Audits can still happen
Accurate information still matters; a ghost policy is not exempt from audit and documentation.
Class code and scope mismatches
If your work or payroll does not match the policy, you can have compliance and audit issues.
Subcontractor paperwork can become the real issue
Missing sub COIs and documentation often cause the actual onboarding problem, not the ghost policy itself.
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 a standard ACORD certificate acceptable?
COI request checklist (to avoid rejections)
- Certificate holder legal name and mailing address
- Job name and jobsite 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)
How we help contractors with this
We are an independent broker that helps contractors structure coverage properly and move fast on compliance items like COIs, endorsements, and policy documents. The goal is not to sell you a workaround. It is to confirm whether a ghost policy actually fits your situation, place the right structure, and keep your paperwork bid-ready. If a portal or GC asks for proof of coverage, it usually comes down to workers' compensation and a current COI, alongside general liability on many bids.