Ghost Policy / Minimum WC for business owners
A ghost policy is a workers' comp policy where the owner is listed but excluded via an exemption — providing a certificate of insurance without the cost of full coverage. Commonly used when clients or GCs require proof of WC.
What it covers
- Minimum premium workers' comp policy issuance
- Certificate of insurance (COI) generation
- Owner listed but excluded from coverage
- State-compliant policy structure
- Annual policy management and renewal
- COI delivery to clients and general contractors
Who it's for
- Exempt business owners who need a COI to satisfy client or GC requirements
- Sole proprietors and LLC members in construction needing proof of WC
- Corporate officers who need project-specific COI documentation
- Business owners in Florida, Texas, Arizona, and Georgia where ghost policies are most common
Why CCA
- We place ghost policies quickly so you don't lose contracts waiting for a COI
- Policies placed with A-rated carriers whose COIs are accepted everywhere
- We coordinate the ghost policy with your exemption filing so both are in order
Common questions about ghost policy / minimum wc
A ghost policy is a workers' comp insurance policy where the only covered person (the business owner) is excluded via an officer or member exemption — so the policy exists and issues a COI, but provides no actual benefit payments because the only person is exempt. It's used to satisfy COI requirements from clients or general contractors.
Ghost policies typically cost $800–$2,500 per year depending on your state, business classification, and carrier. That's far less than the cost of a full workers' comp policy for an active workforce, making it an economical way to maintain COI access while staying exempt.
Use a ghost policy when: you're a legitimate exempt owner who needs a COI for client requirements. Use a full WC policy when: you have employees or subcontractors who need coverage, or your state requires coverage regardless of exemption status. We advise on the right choice for your situation.
Yes — like all WC policies, ghost policies can be audited. Because the owner is exempt and there's no payroll to audit, most audits confirm the policy was correctly structured. The key is having a valid exemption on file that matches the officer exclusion on the policy — we ensure both are in order.
Florida, Texas, Arizona, and Georgia have the highest concentration of ghost policy usage — largely because construction industry activity is high in those states and COI requirements are common. Ghost policies are available in all 50 states.
COIs from ghost policies placed with A-rated carriers are generally accepted by general contractors. Occasionally a GC has specific carrier requirements — we check those in advance and place with an acceptable carrier.
Our filing fees vary by state and complexity. State filing fees (if any) are typically $50–$100. We charge a service fee for handling the paperwork, documentation, and submission. Call us for current pricing — it's far less than the cost of a workers' comp policy.
Yes. Contractors Choice Agency is licensed in all 50 states and files workers' comp exemptions for sole proprietors, corporate officers, and LLC members nationwide.
Typically we can complete the filing within 1–3 business days of receiving your documentation. State processing times vary — Florida, for example, typically approves exemptions within a few weeks.
We review the denial reason, advise whether you have grounds to appeal or correct the filing, and help you pursue the right path — whether that's refiling, appealing, or placing a ghost policy in the interim.
A ghost policy and an exemption serve different purposes. An exemption removes you from WC requirements. A ghost policy gives you a COI while maintaining your exempt status. Many business owners use both — an exemption plus a ghost policy for COI purposes.
A.M. Best ratings reflect a carrier's financial strength. When we place alternative coverage or ghost policies for exempt business owners, we use A-rated carriers so the coverage is real and the COI will be accepted by general contractors and clients.
Yes. Occupational accident insurance is one of the primary alternatives for exempt business owners who want injury protection without workers' comp. We place occupational accident policies with carriers that specialize in this coverage.
We can review your current exemption status, confirm the filing is on record with your state, and check the renewal date. Many business owners discover their exemption lapsed when they get audited — we prevent that proactively.
Typically: your business name and EIN, state of operation, business structure (sole prop, LLC, corporation), ownership percentage, industry/work type, and the names and ownership percentages of all owners being exempted.
Generally no — your exemption is valid in the state where it was filed. If you work in multiple states, you may need exemptions in each state, or we may recommend a ghost policy that provides multi-state COI coverage.
Yes. Construction is the most common restricted industry — many states have stricter rules or exclusions for construction work. Some states also restrict exemptions in healthcare, staffing, and other high-hazard industries.
If you hire W-2 employees after filing an exemption, your exemption may no longer cover you — and workers' comp becomes required for your employees. We advise you on how to structure coverage when your workforce changes.
Once your exemption is approved and in effect, you can typically cancel the underlying workers' comp policy (if you had one). We advise on the correct timing and help you avoid lapses or penalties during the transition.
Yes. We review your current exemption, assess whether you have the right alternative coverage in place, and advise on any changes to state rules that may affect your status. An annual compliance review is a best practice for exempt business owners.
Pair it with related coverage
Ready to file your workers' comp exemption?
Get guidance in 15 minutes from specialists who know your state's exemption rules — sole proprietors, corporate officers, LLC members, and ghost policies.