What is Worker’s Compensation?

• Worker’s Compensation, also called Worker’s Comp or Workman’s Comp, is a type of insurance policy that provides wage replacement and medical benefits to employees injured while on the job. It also pays death benefits to the families of employees who are killed on the job. Workers compensation premiums are primarily based on the amount of payroll and the type of work that the contractor/company is exposed to. The higher the risk that the company is exposed to, the higher the premium will be. For example, a Worker’s Compensation policy for a roofer will be much more expensive than a Worker’s Compensation policy for an office employee, since the roofer has a higher risk exposure.​

I don’t have any employees but somebody is requiring me to have Worker’s Comp insurance. What are my options?

• We help many people in your situation! If you don’t have any employees or subcontractors, you have two options. You can get a Worker’s Compensation policy and choose to be included or excluded. The cheapest, most affordable option is to be excluded (also known as a Ghost Policy). 

What is a Ghost Policy?

• A “ghost policy” is a workers compensation policy where the owner is excluded from coverage and there are no additional employees for the business. It is referred to as a ghost policy because it technically does not provide any real coverage. A ghost policy is typically purchased by a subcontractor to satisfy coverage requirements of a general contractor or other entity hiring the subcontractor. The ghost policy provides potential clients with documented proof of insurance, while not actually offering any real insurance protection. The benefit is that an owner can exclude himself/herself from the workers comp policy and save money, but assumes all risks in the event of an injury.

What does General Liability insurance cover?

• Liability insurance pays for damages if you’re held liable for bodily injury and/or property damage due to your premises and/or operations. It’s important to note that general liability does not pay for faulty work, only for damages that arise from the faulty work.

Do I need to be bonded and insured? What is the benefit?

• The most qualified contractors are both bonded and insured. Being bonded and insured makes you look more legitimate to the client and it gives them the assurance that their interests are protected and the confidence that they are working with a reliable, reputable professional. Another benefit is it often allows you to work on public jobs.