Workers Compensation Insurance

Commonly referred to as workers comp, it is required in most states for businesses with at least 1 employee. Workers Compensation insurance covers medical costs and lost wages for an employee in the event of an injury on the job. State penalties may be placed on companies that do not carry this insurance. Rates are determined by the specific class code(s) your business is classified under. e.g. Roofing, Plumbing, Carpentry, etc.

What if I have no employees only sub-contractors?

It is a common misconception that if you classify your workers as sub-contractors you are not responsible to carry workers comp insurance. If your sub-contractors do not carry their own workers comp insurance, then technically you may be held responsible in the event they are injured while working for you. It is for this reason that the state will still consider them to be employees with regards to workers compensation. Conversely, if your sub-contractors carry their own workers comp insurance and can provide you with a certificate of insurance then you will not have to add their wages to your workers comp policy and may not have to carry a policy at all.

What is a “Ghost Policy”?

A “Ghost Policy” is a worker’s compensation policy that doesn’t cover any employees and the owner is also excluded. This is often purchased when a contractor is a sole-proprietor with no employees and is looking to take on a job as a sub-contractor for a larger vendor or general contractor. The “Ghost Policy” releases the general contractor or vendor from having to include your wages on their workers comp policy thus potentially saving them from having increased insurance premiums. Many larger jobs will require you to carry workers comp even though you may not have any employees and work alone. A “Ghost Policy” is often the most affordable way to satisfy this requirement.

We’ve made it easy to obtain this valuable coverage. Click “Get Quote” to see what it costs. If you’d like more information and prefer to speak with an agent, feel free to give us a call. We’re here to help Mon-Fri / 8am – 5:30pm PT. 818-564-4068.