How a Ghost Policy Works | North Carolina Insurance Experts
How a Ghost Policy Works
If you’re a business owner or independent contractor in North Carolina, you may have heard of something called a ghost insurance policy. While the name might sound mysterious, this type of policy serves a very specific purpose, especially in the world of workers’ compensation insurance. In this guide, we’ll break down what a ghost policy is, who needs one, and why it might be required for your business to operate legally and efficiently in North Carolina.
What Is a Ghost Policy?
A ghost policy is a type of workers’ compensation insurance that provides no actual coverage for employees—because there are no employees to cover. Instead, it is designed for business owners or sole proprietors who are legally required to show proof of workers’ comp insurance, even though they don’t employ anyone. These policies are often used to meet state requirements or comply with subcontractor agreements.
Why North Carolina Business Owners May Need a Ghost Policy
In North Carolina, general contractors, construction companies, and subcontractors are often required to show proof of workers’ compensation coverage—even if they don’t have any staff. A ghost policy satisfies this requirement without the cost of a full workers’ compensation policy. It allows business owners to:
- Bid on commercial and government contracts
- Comply with licensing board requirements
- Avoid potential fines or delays on job sites
This type of policy is especially common in the construction and trades industries across North Carolina cities such as Raleigh, Charlotte, Greensboro, and Wilmington.
Who Qualifies for a Ghost Workers’ Comp Policy?
Ghost policies are typically issued to sole proprietors, single-member LLCs, and small business owners who:
- Have no employees or subcontractors
- Are not required to cover themselves under the policy
- Need a certificate of insurance (COI) for job bidding or legal compliance
Keep in mind that if your business grows or you hire employees, your ghost policy must be converted into a standard workers’ compensation policy that provides real coverage.
How Much Does a Ghost Policy Cost in North Carolina?
Ghost policy premiums are significantly lower than standard workers’ compensation policies because there’s minimal risk to the insurer. In North Carolina, you can typically expect to pay between $750 to $1,200 annually, depending on the carrier, your business type, and your location. Our agency works with top-rated insurers to find you the most affordable ghost policy that meets state and industry requirements.
Common Industries That Use Ghost Policies
While any business without employees may need a ghost policy, it’s most commonly seen in:
- Construction and general contracting
- Plumbing, HVAC, and electrical services
- Landscaping and lawn care
- Independent delivery and trucking services
Whether you’re operating in urban hubs like Durham or serving clients in smaller North Carolina towns, a ghost policy can be your key to staying compliant and competitive.
How to Get a Ghost Policy in North Carolina
Getting a ghost workers’ compensation policy is simple when you work with an experienced local insurance agency. At our North Carolina insurance office, we specialize in helping small business owners understand their obligations and get the coverage they need—without overpaying.
When you contact us, we’ll walk you through the application process, verify your eligibility, and issue your certificate of insurance (COI) quickly—so you can get back to doing what you do best.
Call Us Today for Expert Help on Ghost Policies
If you’re a contractor, sole proprietor, or business owner in North Carolina and need help understanding or purchasing a ghost policy, give our team a call today. Our local insurance experts will ensure you meet all legal requirements and secure the documentation you need to keep working without interruption.
Call us now to get a fast, affordable ghost policy quote tailored for your North Carolina business!
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