Insurance Article: Workers’ Compensation- Ghost Policies

In Uncategorized by Savanna Vandenhuevel

Step into the captivating world of workers’ compensation ghost policies! These intriguing insurance arrangements are akin to the ghosts of the business world, quietly existing without a visible workforce.

Imagine a bustling truck yard teeming with activity, each rig with its own distinctive personality. Among them stands Jack’s trucking office, where the aroma of diesel fuel fills the air. Jack, the friendly owner-operator, is a one-man powerhouse, managing operations solo. However, to meet regulatory requirements and protect against unforeseen accidents, Jack has secured a workers’ compensation ghost policy. It’s his invisible safety net, guaranteeing coverage in case of a slip on an oil spill or an unexpected collision.

What is a Ghost Policy?

A ghost policy in the context of workers’ compensation insurance refers to a policy that is issued to a business that doesn’t have any actual employees. These policies are typically obtained by sole proprietors, independent contractors, or small businesses with no employees, often to fulfill contractual requirements or regulatory mandates.

This coverage usually includes benefits for medical expenses, lost wages, and disability benefits if the business owner(s) are injured while performing work-related tasks. It’s important to note that the specific coverage and limits of a workers’ compensation ghost policy can vary depending on the insurance provider and the terms of the policy.

Want to know more about workers’ compensation ghost policies? Get in touch with one of our business lines associates today. They’re eager to help you with a quote or answer any questions you may have.