A Certificate Without the Coverage? That’s the Ghost Policy

Workers’ Comp Ghost Policy for Contractors – No Employees, No Problem

If you're a one-person contractor in Arizona, you’ve probably run into this situation: a GC or client wants proof of workers’ comp, even though you don’t have any employees. That’s where a ghost policy comes in. It’s a special type of workers’ compensation policy issued with no payroll and no covered individuals—meaning it exists solely to provide a certificate of insurance without offering actual injury protection.

What a Ghost Policy Really Covers (and Doesn’t)

This part’s important: a ghost policy will not pay for any injury. The owner is excluded, and there are no employees listed. If you fall off a roof or get hurt on the job, you won’t be able to file a claim. You’d need to rely on your health insurance or personal resources.

A ghost policy is compliance-driven. It’s designed for contractors who accept the risk in exchange for lower costs and who simply need a valid COI to get on the job.

Why One-Person Contractors Use Ghost Policies

Whether you're a self-employed roofer in Mesa or a drywall installer in Goodyear, you might be required to show workers’ comp coverage to step onto a jobsite. For independent contractors, GCs typically ask for a COI to avoid potential liability. A ghost policy checks that box without the cost of full coverage. These policies are popular with:

• Sole proprietors working alone
  
• “Paper GCs” who subcontract 100% of labor
  
• Contractors without payroll who need to meet project requirements.
  
  

You’re not buying coverage for yourself—you’re buying a policy that proves you’re not passing any liability to the GC.

What a Ghost Policy Really Covers (and Doesn’t)

This part’s important: a ghost policy will not pay for any injury. The owner is excluded, and there are no employees listed. If you fall off a roof or get hurt on the job, you won’t be able to file a claim. You’d need to rely on your health insurance or personal resources.

A ghost policy is compliance-driven. It’s designed for contractors who accept the risk in exchange for lower costs and who simply need a valid COI to get on the job. If you want true workers’ comp protection—even just for yourself—you’ll need a minimum premium policy that includes the owner.

How Much Does a Ghost Policy Cost in Arizona?

Ghost policies are priced on the low end because there’s no payroll. You’re essentially paying for the certificate. For most contractors, this means:

• Annual premium around $750–$1,000
• Pricing depends on trade class and carrier
• Still far less than what a true WC policy with payroll would cost

Some trades may come in slightly lower or higher based on classification and underwriting, but ghost policies are an affordable solution to a common compliance issue.

How to Get a Ghost Policy

Not all carriers in Arizona offer ghost policies. Some require a minimum payroll—even if it’s fake payroll on paper. Others won’t write a policy if the owner doesn’t elect coverage. That’s where JP Insurance Group steps in. We work with carriers that understand contractors and can provide:

• Fast, no-hassle approval
• Owner exclusion form
• Immediate Certificates of Insurance
• Support at audit time to confirm no payroll was used
  

Construction Is Risky—That’s Why Coverage Matters

Arizona’s contractors face some of the toughest job site risks—falls, equipment injuries, power tool accidents, and heavy lifting mishaps, just to name a few. In fact, construction is consistently one of the highest-rated industries for workers’ comp because of how often injuries happen and how serious they can be.



And while Arizona does allow workers to reject coverage by signing a waiver, most don’t—because if they do, they lose their right to benefits. As an employer, we always recommend encouraging your workers to accept coverage. It protects them, and it protects you.

Using the Certificate of Insurance (COI)

Once your ghost policy is in force, you’ll receive a workers’ comp COI showing active coverage—usually with a note that no employees are covered and the owner is excluded. But for most job sites and project managers, that’s enough to check the box and keep your project moving forward.

Know When It’s Time to Upgrade

Ghost policies are ideal for startup and one-man operations. But the moment you:

• Hire an employee
• Want workers’ comp to cover yourself
• Start working higher-risk or larger projects

…it’s time to switch to a full workers’ comp policy. JP Insurance can help with that transition too.

We Know Ghost Policies – And We Make It Simple

At JP Insurance Group, we’ve helped dozens of Arizona contractors secure ghost policies fast and affordably. Whether you’re in Chandler, Flagstaff, Buckeye, or anywhere in between, we can walk you through the application, help you understand the exclusions, and get you what you need to stay compliant.