What is a Ghost Policy?
A ghost policy is really just like any other Workers Compensation policy. The term “Ghost” is an unofficial word used to describe a workers compensation policy where the owner is excluded and there are no employees, uninsured subcontractors or payroll estimated for the policy term.
What if I hire someone during the policy?
If you buy a ghost policy and then you hire someone (or use an uninsured sub) at any point during the policy term, they are still covered by your insurance policy. It is NOT possible, in any state, to buy a workers compensation policy that can be prevented from covering anyone you hire- UNLESS they have their own policy. However, you would likely be forced by the insurance company to switch to a traditional workers compensation policy at your renewal, and potentially pay additional premium due to the payroll you had in that prior year that wasn’t initially disclosed.