A “ghost” workers’ compensation policy excludes the owner from coverage and is written for a business with no employees. A ghost workers’ compensation policy is not designed to cover anyone but will cover if the employer hires employees or contracts with an uninsured subcontractor.
The purpose of a ghost workers’ compensation policy is to satisfy certificate and contract requirements so the excluded owners can work.
The cost of a ghost workers’ compensation policy depends on the class of work. The insured will have to pay the minimum premium for that class and will be audited. If the audit shows new employees or uninsured subcontracted workers, the business will be responsible for paying that premium. For example, the cost or minimum premium for a janitorial exposure is $472.00 per year.
Owners of a business can elect to be excluded from workers’ compensation coverage and in the State of Utah, sole proprietors, partners, and LLC members are automatically excluded from coverage.
For the most competitive workers’ compensation insurance coverage, contact a knowledgeable agent at Anderson Insurance Group today.
Workers’ Compensation Insurance – Anderson Insurance Group – Salt Lake City – Utah