Many business owners are surprised to learn they may need workers’ compensation insurance even if they don’t have employees. This is where a ghost workers’ comp policy comes in.

A ghost policy is a workers’ compensation policy with zero employees listed. It exists to satisfy state requirements, contract obligations, or insurance audits—without paying payroll-based premiums.

Who typically needs a ghost policy?

• Sole proprietors
• Single-member LLCs
• Independent contractors
• Subcontractors working for general contractors
• Owner-only businesses with no W-2 employees

General contractors often require proof of workers’ comp before allowing subcontractors on a job site. Without a ghost policy, you could lose work opportunities—even if you’re the only person in the business.

At Upstate’s Choice Insurance, we help contractors secure low-cost ghost workers’ comp policies that meet state and contract requirements without unnecessary coverage.