Owner-Only Certificate Policy vs. Standard Workers' Comp

In some states, a business owner with no employees can obtain a workers' comp policy that names only the owner as covered, then in certain circumstances exclude that owner from actual coverage while still holding a policy on file. This kind of policy, often called a ghost policy or owner-only certificate policy, is typically purchased not because the owner wants coverage, but because a general contractor, property manager, or client requires a certificate of insurance showing workers' comp is in place before allowing a subcontractor onto a job. The practice exists in a regulatory gray area in some states and has drawn scrutiny in others because it can be used to produce a certificate without any real coverage backing it up if the exclusion is elected.

A standard workers' comp policy, by contrast, is priced and issued to actually cover the people performing the work, whether that's the owner alone or the owner plus employees on payroll. Our agency writes contractors and other small businesses that have employees on payroll, and we do not offer owner-only certificate-only policies. If your goal is a certificate of insurance that a general contractor or client will accept, the more durable solution is a standard policy that reflects who is actually doing the work and is priced on real payroll, rather than a policy structured mainly to produce a piece of paper.