What’s a ghost policy?

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What’s a Ghost Workers’ Comp Policy?

In the complex realm of workers’ compensation insurance, one term that often perplexes employers is the “ghost policy.” While it may sound mysterious, a workers’ comp ghost policy is a unique insurance solution designed to address the needs of certain businesses, particularly those with minimal or no actual employees.

A workers’ comp ghost policy is:

  • essentially a specialized insurance policy tailored for businesses that operate with only a limited number of employees or, in some cases, none at all.
  • It serves as a safeguard against potential liabilities related to workplace injuries, even if the likelihood of such incidents is minimal.

The primary purpose of a ghost policy is:

  • to meet the legal requirements for workers’ compensation coverage without burdening the business owner with the costs associated with a full-scale policy. In situations where a company’s workforce is comprised mainly of owners, executives, or independent contractors who are not subject to workers’ comp regulations, a ghost policy provides a cost-effective solution.

Why Ghost?

The term “ghost” in this context stems from the fact that there may be no actual employees covered by the policy. Instead, the coverage is a phantom protection against unforeseen risks. This type of policy typically includes minimum premiums, making it an attractive option for businesses that want to comply with legal requirements without incurring substantial costs.

By State?

It’s important to note that while a workers’ comp ghost policy may seem like an enigma, its legitimacy lies in its adherence to state regulations. Each state has its own rules regarding workers’ compensation. Ghost policies are structured to comply with these regulations while accommodating the unique circumstances of certain businesses.


TLDR:  a workers’ comp ghost policy is a specialized insurance solution crafted for businesses with minimal or no traditional employees. By providing a cost-effective way to meet legal requirements, these policies offer a viable option for businesses looking to navigate the intricacies of workers’ compensation while keeping their financial considerations in check. Understanding this concept sheds light on how businesses can protect themselves in a nuanced and ever-evolving insurance landscape.

We can help

Here at Atlantic Payroll Partner we can help you with your workers’ comp needs; even if it’s just a ghost policy. Get a quote   or call 772-466-0440.

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