In terms of worker’s compensation insurance, a workers’ comp ghost policy exists and serves to cater to certain business owners. This article explains in depth what a ghost policy is, its features, costs, and how to find the cheapest options available.
What is a Ghost Policy?
A ghost policy is a particular type of workers’ compensation insurance created for independent contractors, sole proprietors, and self-employed businesses with no employees. This policy effectively provides insurance documentation without any real protection for the owner and the owner’s business activities.
Ghost policies can be particularly helpful in instances where business owners are obliged by contract or state regulation to provide proof of workers’ compensation insurance but do not wish to pay a premium for policies providing extensive cover.
Those are Policies that are meant to meet minimum standards imposed by states but do not provide cover to the business owners themselves, hence the name “ghost,” meaning minimal cover.
To put it simply, business owners do not get any funding or protection from a workers’ comp ghost policy . It simply acts as a certificate of insurance (COI) and nothing more, as state regulations or contract terms are being complied with. Below are the main directives about the coverage’s scope:
Workers’ Comp Ghost Policy Cost
Ghost policies are cheaper than active workers’ comp policies and their premiums are generally priced as minimum amounts because they do not issue coverage for employees.
Factors Influencing Cost:
How Much is a Ghost Policy?
The cost of purchasing a ghost policy varies based on a whole range of factors:
State | Average Annual Cost |
Alabama | $1,200 |
Alaska | $1,500 |
Arizona | $1,000 |
Arkansas | $1,200 |
California | Not Allowed |
Colorado | $1,000 |
Connecticut | $1,500 |
Delaware | $1,250 |
Florida | $1,000 |
Georgia | $1,500 – $1,800 |
Hawaii | $1,200 |
Idaho | $1,000 |
Illinois | $1,200 |
Indiana | $1,000 |
Iowa | $1,200 |
Kansas | $1,000 |
Kentucky | $1,200 |
Louisiana | $1,300 |
Maine | $1,400 |
Maryland | $1,500 |
Massachusetts | Not Allowed |
Michigan | $1,500 |
Minnesota | $1,200 |
Mississippi | $1,000 |
Missouri | $1,100 |
Montana | $1,300 |
Nebraska | $1,200 |
Nevada | $1,100 |
New Hampshire | Not Allowed |
New Jersey | Not Allowed |
New Mexico | $1,000 |
New York | Not Allowed |
North Carolina | Not Allowed |
North Dakota | Not Allowed |
Ohio | Not Allowed |
Oklahoma | $1,200 |
Oregon | $1,300 |
Pennsylvania | $1,500 |
Rhode Island | Not Allowed |
South Carolina | $1,250 – $1,550 |
South Dakota | Not Allowed |
Tennessee | $1,000 |
Texas | $800 |
Utah | $950 |
Vermont | Not Allowed |
Virginia | $958 |
Washington | Not Allowed |
West Virginia | $1,100 |
Wisconsin | Not Allowed |
Wyoming | Not Allowed |
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Cheapest Workers’ Comp Ghost Policy
To attain the best and the most affordable workers’ comp ghost policy, it’s advisable to get numerous insurance quotes and compare the various offers. Here are strategies to ensure you get the cheapest policy;
Conclusion
A ghost policy may be a perfect solution for self-employed and independent contractors looking for a way to satisfy workers’ compensation insurance requirements without the expenses associated with employee coverage. Yet, it is important to remember the challenges of these policies, particularly, their non-coverage of policyholders.
For more information on ghost policies or any other policies, contact Insuranks. We provide expert advice, rich comparisons, and options that best meet your needs to find coverage.
For me this company has proven to be the best to do business with and worth my hard earned money. Contractors this is your company look no further.
Decent experience with Hiscox business insurance
Good company. Good and knowledgable customer service. If they don't know something they will pass you on to a more experienced rep that is more knowledgable. So far so good.
Best insurance ever
Coolest concept, I wish this was applied to other insurance products too.
Fastest ever online insurance quote and purchase! Also, great rates and professional customer reps that helps with whatever you need, if you need. Nice company!
Embroker sells a product that it doesn't honor. We purchased a combination D&O and EPLI policy. However, when it came to renewal, it told us that we only had D&O coverage even through our ACCORD certificate clearly mentions we have both. Basically they refused to honor the EPLI coverage and will leave you hanging with the bag. At time of renewal, they more than doubled our quote to get similar coverage. Basically BAIT & SWITCH. Unacceptable tactics. Easy to buy and pay but you may not be... Read More
Great platform. Terrible policy. There is no teeth behind it. No coverage. It's a fake policy that they sell. Sold us an EPLI policy that later we came to find out had no EPLI coverage. Amazing that they can get away with outright fraud. Check the positive reviews. They are all 'Anonymous' posted by Emroker staff. Stay away and find a real policy that will actually provide you coverage. We've been bitten by them and hope to find restitution via a lawsuit.
Paul Burns Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
It has been 70 days since I made a claim on the roof of my building. No one from the company will return calls. We are in hurricane season and located in Louisiana. My building is tarped to secure it.
Felicia Broadus Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
They are the worst, my truck was hit in January 23 and the claim adjuster has not been out to this very day! They have every excuse in the book as to why. They have not been to the collision shop. PLEASE AVOID THESE SCAM ARTIST!
Felicia Broadus Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
Avoid these SCAM ARTISTS! They don’t pay claims!!! Save yourself the trouble and money!
Kasey Arey Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
This company gives you a price that was in place for a year and when you have to use it there is fine print were they can go back and charge you more. Would not recommend them to any one. Crooks
John Murphy Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
Worst insurance comapny I have ever dealt with. A commercial vehicle represented by GUARD t boned my wife and daughters family vehicle in the middle of the day. Driver was cited and insurance claim insued. Fast forward 4 months and refusal of full amount of claim is still happening. Driver was found guilty, repairs started on my vehicle and when it comes to the final bill and diminished value we cannot get any help. I am out a family car, have an injured and traumatized wife and children,... Read More
Harshadray Patel Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
Extremely bad service, when you call , will make you wait on the phone for ever (over an Hour) and still no one to answer , so you end up hanging up. To cancel the policy, bounce you from one department to the other. They are supposed to refund from the date other insurance started and after sending the proof of other insurance policy, still they did not refund based on that actual date instead they use the date i managed to get hold of them. They charged me $7000.00 for a year's insurance on... Read More
Aaron Wensel Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
Guard Insurance is terrible. They were so bad I cancelled them because them couldn't figure out why I would never get a paper copy of the bill . Verified my address with them and still intermittent billing. I cancelled them in March through my local broker. Today 6/27 I get a letter in the mail from a collections company saying I owe 87.97. This was the first myself or my broker heard of owing this money. Here is some advice for this failure of a company send me a god damn bill and I will pay.... Read More
Michael Swink Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
My employer had to have workers compensation by law. He obtained a policy through this Berkshire Hathaway GUARD and they failed me. I fell from a ladder and fractured my spine in 7 different places, my clavicle in 4 places, and the base of my skull. Going to my Dr visits I was prescribed medication for pain and the insurance company placed a pre-authorization hold on me picking up the medication from Walgreens. The hold lasted 5 days! My weekly benefits have never been on time, right now... Read More
Liberty Mutual is one of the more simple companies to deal with. I had to file a claim for my business owner policy after I caught one of my employees stealing a large amount of products from my business. Liberty mutual paid the claim fast and with no efforts. I wish the legal process was as easy…
For me this company has proven to be the best to do business with and worth my hard earned money. Contractors this is your company look no further.
Decent experience with Hiscox business insurance
Very pleased with Hiscox - their small business insurance rates are very good and they specialize in small business which gives me a peace of mind as a small business owner. So far so good!
Their customer service is absolutely fantastic. Very patient, knowledgable and provided excellent explanation of the purchased policy. I would highly recommend this insurance company to anyone that's looking to protect their business from unexpected expense. Thank you Hiscox for doing a great job for my business!
STAY AWAY! I wouldn't recommend hiscox small business liability insurance to anyone. Better not waste both your money and your time. Hiscox customer service is extremely unpleasant, not organized and not professional. It is the worst company we have dealt with in almost 25 years in business!
Good company. Good and knowledgable customer service. If they don't know something they will pass you on to a more experienced rep that is more knowledgable. So far so good.
Extremely fast and simple. Wasted a lot of time and money until I found these guys! I feel like my business is in good hands now.
Hiscox's the best! My business is insured with them for over 12 years and am not planning to switch!
Excellent experience with Hiscox BOP for my coffee shop. They provided all it needed.
My HI barbershop is well covered with their great BOP product for 5 years already! not planning to switch!
Best insurance ever
Coolest concept, I wish this was applied to other insurance products too.
Great experience
Didn't relate to the concept much, but it makes sense if you need insurance to go
It doesn't really feel sustainable to me and doesn't offer business interruption, product liability and commercial property insurance. They have no local agents and despite their technology first approach you cannot file claims online. Additionally, product manufacturers are not covered by Thimble and they don't provide enterprise solutions.
As a contractor that works 3 times a week for a few hours, Thimble gets really handy for me and saves me money. I have no use for these massive business insurance coverages offered by traditional insurance companies.
Excellent concept which is useful to many small businesses!
Been waiting for this type of solution for a long time!
Love their business insurance solutions for freelancers! Great app!