If you’re a self-employed business owner with no employees, you’ve probably run into situations where someone—maybe a licensing board or a GC—asks for proof of workers comp.

Your first reaction might be:
“Why do I need workers comp if I don’t have any employees?”

That’s where a ghost policy comes in.

A ghost policy is a workers compensation policy with zero payroll and no coverage for the business owner. It’s designed for solo operators who:

• Are comp exempt under state law

• Have no W2 employees or uninsured subs

• Still need to show proof of coverage to clients or regulators

It’s called a ghost policy because, on paper, it looks like a policy… but it doesn’t actually cover anyone unless your labor situation changes mid-year.

Even if you’re working alone, you might need a ghost policy if:

• A state licensing board requires proof of workers comp

• A general contractor or commercial client asks for a certificate

• You want to avoid audit headaches if you accidentally trigger coverage

It’s basically the cheapest and easiest way to stay compliant—especially in the trades.

And if you do end up hiring a subcontractor or W2 helper mid-year, the policy is already in place—you just need to update your coverage.

🔗 Want to know when a comp exemption isn’t enough? Check out this article for all the reasons you might still be on the hook.

Ghost policies are typically written through your state’s assigned risk pool, and pricing is based on the minimum premium for the class code and coverage limits you select.

There’s no payroll to rate, so your cost comes down to limits and state guidelines.

Here are current (2024) rates in the states Viking Insurance Services is licensed:

⚠️ Note: These are base rates as of the time of writing. Prices may change annually. Always confirm with an agent.

💵 Georgia, North Carolina, South Carolina (NCCI Pool)

💵 Tennessee (NCCI Pool)

Ghost policies are auditable. That means:

• If you hire W2 employees

• Or pay any uninsured subcontractor for labor

• Or fail to collect proper certificates of insurance…

…you’ll owe retroactive premium on those payments—at a high assigned risk rate.

We’ve seen “cheap” ghost policies turn into $10,000+ audit bills when contractors didn’t follow the rules.

🔗 Not sure how audits work? Read our guide to surviving workers comp audits and keep yourself out of hot water.

Most people don’t know this… but there’s a non-assigned pool ghost policy option that:

• Meets all the same compliance requirements

• Covers the business owner (limited benefit)

• Costs hundreds less than the state pool

If you check all the boxes below, you may qualify:

✅ Eligibility Guidelines:

• Must be a Sole Prop, One-Person LLC, or S-Corp (non-construction only)

• Between the ages of 18 and 64

• No W2 employees or 1099 laborers

• Valid Social Security Number

• Active email address

If that’s you, let’s get you out of the overpriced pool and into a real policy that works.

👉 Click here to get a custom quote

If you’re:

• Getting asked for workers comp certs

• Working in a licensed trade

• Or subcontracting under a GC…

…a ghost policy is the fastest, cheapest way to protect your business and stay compliant.

Just make sure you understand how it works—and don’t use it if you plan to hire help.

We’ll help you decide if it’s the right fit, and whether you qualify for a smarter, cheaper alternative.