Ghost Workers’ Comp Policy: What It Is and When You Need One

If you’re a solo contractor or small business owner with no employees, you might wonder why you're being asked for a workers’ comp certificate. That’s where a ghost policy comes in. It’s a minimal workers’ comp policy that doesn’t cover anyone—but shows proof of coverage to meet state or client requirements.

Ghost policies are common for independent contractors, especially in construction or trades, where general contractors require proof from every subcontractor. While these policies are inexpensive, they typically exclude the owner from coverage unless you choose to opt-in (and pay more).

When to consider a ghost policy:

• You’re bidding on jobs that require a COI (certificate of insurance)

• You’re a sole proprietor with no W2 employees

• You need to stay compliant with CSLB or local regulations

Pro Tip: Avoid gaps in coverage, as lapses—even for ghost policies—can make future insurance more expensive.