Workers Comp Ghost Policy: Cost & Quotes From $30/mo

2.3 million men and women experience accidents while on the job. Workers comp insurance is a critical part of the US workforce. It functions to protect employees and employers against the costs of numerous injuries and illnesses.

Medically consulted injuries totaled 4.2 million in 2021. In the same time period, the US Bureau of Labor Statistics recorded over 5,000 of those incidents having deadly consequences. They reported a 9% increase from the previous year.

For these reasons, it is easy to see why workers’ comp policies are required for businesses. However, some can have exceptions to this policy if they don’t have eligible employees. 

However, this exception can cause a problem for legal and client requirements, leading to some of these businesses purchasing a ghost policy for workers comp.In this article, we will cover the basics including:

  • Definition of workers comp ghost policy 

  • A brief history of workers comp ghost policy

  • Why would you need a workers comp ghost policy?

  • Is workers comp ghost policy illegal?

  • Cost of workers comp ghost policy

  • Where to purchase workers comp ghost policy

What is a Workers Comp Ghost Policy?

A workmans comp ghost policy is an insurance policy geared toward self-employed business owners that lets them satisfy client requirements and state laws about workers comp. However, since the owner doesn’t have any employees needing coverage, the policy doesn’t actually cover anyone.

A workers comp insurance ghost policy provides a certificate of insurance (COI) for the owner, which is often required of him to conduct business. These policies are often cheaper than a regular workers comp policy, so ghost workers compensation might actually be the right decision for owners.

A workers compensation insurance ghost policy is great for saving money, but employers should be wary that there are serious legal consequences. Be sure to pick an insurance company that will help you decide if you need a workers comp ghost policy for your personal situation.

Brief History of Workers Comp Ghost Policy

Workers’ compensation first came after states began passing workers compensation acts in response to revelations about riskier working conditions in an increasingly industrialized workforce in the 1900s.

Before this, workers would have to sue their own company to get any compensation and would often lose because the burden of proof was too high and legal costs were to much. 

Eventually, states would make a workers’ compensation insurance policy compulsory to for the majority of businesses. Customers and clients would also adopt their own standards requiring proof of this kind of insurance.

However, not every business has employees so having to pay for a workers comp policy when it doesn’t grant a benefit was seen as an undue burden by many. In response, insurance companies began offering ghost workers comp insurance which allowed companies to have proof of this kind of insurance while paying less for premiums. This was when the current ghost policy workers comp definition came to be, which is an employee insurance policy that covers no employees.

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Why Would You Need a Workers Comp Ghost Policy?

The main reasons to buy a workers comp ghost policy include the following:

  • To secure a contract with a client who requires proof of workers comp insurance

  • To fulfill state requirements for your company to operate there

  • If you are bidding on a job in some industries like construction, you need to show you have the potential to hire employees and provide them coverage. A workers comp ghost policy is an inexpensive way to show this

Is Workers Comp Ghost Policy Illegal?

Yes, in some states, workers’ comp ghost policies are banned by law. The reason these policies are banned is that some employers take advantage of them and refuse to use them the right way, leading to unreported workers not getting coverage. Below is a list of which states these policies are offered vs where they are unavailable:

Legal Illegal or Unavailable
Alabama California
Alaska Colorado
Arkansas Delaware
Connecticut Hawaii
Florida Idaho
Georgia Kentucky
Illinois Idaho
Indiana Louisiana
Iowa Maine
Kansas Maryland
Mississippi Massachusetts
Missouri Michigan
Montana Minnesota
Nebraska Oklahoma
Nevada Oregon
New Hampshire Pennsylvania
New Mexico Rhode Island
Ohio Tennessee
South Carolina Texas
South Dakota Utah
Vermont Wisconsin
West Virginia

Some states will have punishments for utilizing a workers comp ghost policy. You will have to pay the penalty for not having the proper worker’s compensation requirements. These penalties can be quite severe, resulting in over $10,000 in fines and jail time of up to a year. Your business may also be ordered to be shuttered.

Workers Comp Ghost Policy GA

Workers compensation ghost policy in Georgia is available between $1500-$1800. Georgia’s State Board of Workers’ Compensation requires that your coverage starts from the first day of work. The law requires any business with three or more workers must have a form of workers’ compensation insurance. You can verify your coverage on their website

Workers Comp Ghost Policy SC

Ghost policies in South Carolina typically cost between $1250-$1550. The South Carolina Workers Compensation Commission determines that anybody with four or more employees requires coverage.

In South Carolina, non-profit organizations are required to have workers’ compensation policies as well, though it does make exemptions for agricultural employees and federal employees.

Why Would It Be Better to Purchase Real Workers Compensation Insurance Instead?

While a workers comp ghost policy can be a good option, it might not always be the best thing for your company. A few reasons it would be better to purchase real workers comp insurance include:

  • If you plan to hire full-time workers in the future, you will want to invest in a real workers comp policy earlier so you can start working on safety incentives and getting your premium down early

  • Some states ban ghost workers comp policies so that you would have no choice but to purchase a real one

  • If you have forgotten to disclose to your insurance company when you hire an employee, you could get hit with a retroactive premium penalty that could be unexpected and costly

Do You Pay for a Workers Comp Ghost Policy?

Yes, despite a ghost workmans comp policy offering no coverage, it does cost a premium every month. Rates differ from one company to the next. You can get the cheapest workers comp ghost policy quote by comparing offers. Start by clicking the “Get Quotes” button on this page. 

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How Much Does Ghost Policy Workers Compensation Insurance Cost?

The workers comp ghost policy cost is $150 per month or $1,800 per year. Unlike normal workers comp insurance, ghost workers comp policy cost won’t vary based on your payroll size. This means you will often be charged the minimum premium for the policy. Below is a price comparison of a few different companies that offer ghost policy workers’ compensation:

Company Cost per Month Cost per Month Best For
Tivly $20 $240 Comparing quotes over the phone
FarmerBrown $84 $1,008 Broad experience in offering ghost workers comp insurance
ContractorsLiability $100 $1,200 Instant quotes

Compare Workers Compensation Insurance Quotes Online

Get all the best quotes from leading providers in a click of a button!

Where to Purchase Workers Comp Ghost Policy?

Below we have broken down some insurance companies that sell a workers comp insurance ghost policy. Read some of the reviews below to know their pros, cons, and average cost. 

Tivly Workers Comp Ghost Policy


  • Great selection of partners

  • Personalized customer service


  • Doesn’t issue online quotes 

Tivly offers competitive insurance policies with its various insurance partners. They are considered best for starting price and offer workers comp ghost policy options. The company is highly trusted, earning an A rating from the Better Business Bureau. Call a representative now to compare quotes over the phone. 

A big advantage of using Tivly is that they have a huge marketplace of over 200 partners to shop around for. They use flexible targeting that will make the process of narrowing it down to the best option extremely simple.

Best for: Comparing quotes over the phone 

Average cost: $20 per month 

Our rating: 10/10

Farmer Brown Workers Comp Ghost Policy


  • Expert knowledge

  • Great value options


  • Have to call for quotes

FarmerBrown is an insurance brand with experience in ghost workers’ compensation policies. This company is best for its agent expertise. They will work with you to determine whether you need a real workers’ compensation policy or if a ghost policy can save you money. They are licensed in all 50 states and have an A rating from the Better Business Bureau.

Best for: Broad experience in offering ghost workers comp insurance

Average cost: $84 per month 

Our rating: 10/10

Contractors Liability Workers Comp Ghost Policy


  • Quotes in minutes

  • Multi-lingual agents

  • Instant quotes 


  • Doesn’t issue a lot of information about the workers comp ghost policy they sell

Another good option for a workers comp ghost policy is Contractors Liability. This company is best for its ability to get quick online quotes. They work with you to be militant about your insurance certificates, and they specialize in the construction industry to make sure you get to bid on the contracts that you want with the correct insurance. Their website has good resources for those unfamiliar with ghost workers comp insurance, and their agents speak both English and Spanish.

Best for: Instant quotes

Average cost: $100 per month 

Our rating: 10/10

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