Coverage
Are you familiar with the term “Ghost Policy” when referencing workers compensation insurance?
We sell ghost workers comp policies often here in Georgia. We re-iterate that the coverage is positioned to provide no coverage for any one at the base rate. The key to that statement is the base rate.
So… A customer purchases a “Ghost Policy” because they are required to have workers comp to work for a company or individual. The policy pricing options start at:
- $950.00 for the state minimum of 100,000/100,000/500,000 in coverage
- $1,050.00 for coverage of 500,000/500,000/500,000 in coverage
- $1,150.00 for coverage of 1,000,000/1,000,000/1,000,000 in coverage
This base coverage does NOT include coverage for any employee wages. If there were employee wages the base pricing would not be sufficient to properly quantify the cost of the policy.
MOST times, the owner of the company exempts themselves from coverage to mitigate the additional cost. Example: a $950.00 workers comp policy provides the business coverage but provides no coverage to the business owner if he were to get hurt on the job. If the business were to hire an employee or pay a sub-contractor who does NOT have a workers comp policy, the workers comp policy WOULD provide coverage to the employee or Sub… The catch is at the time the worker’s comp policy was audited, there would be additional premium due.
With a GHOST workers comp policy the best senario is to have NO employee payroll and NO payments to SUBs that are not insured with thier OWN workers comp policy.
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