If Any Workers’ Compensation Insurance or Ghost Insurance Policies
Since every State except Texas requires that contractors that have employees carry Workers’ Compensation Insurance, you as a contractor with no employees are exempt from having to purchase Workers’ Compensation Insurance. However as with everything in life it is not that simple.
If you are hired by a large General Contractor before they will let you set foot on the job site they will request you provide them a certificate of insurance. This is standard procedure industry wide. They will always ask for to basic things at a bare minimum, General Liability Insurance and Workers’ Compensation Insurance.
If you are a contractor with no employees you should already have General Liability Insurance. But what about Workers’ Compensation Insurance the answer is probably no since you have no employees. What can you possibly do that will cheaply and efficiently satisfy your contractual obligations?
The answer is an If Any Workers’ Compensation Insurance Policy or a Ghost Workers’ Compensation Insurance Policy. Keep reading for some money saving tips and industry insider information below.
What If I Am Asked To Get Workers’ Compensation Insurance and I Have No Employees?
Many times a day we receive requests from contractors that have no employees inquiring about how to obtain a certificate of insurance showing they have Workers’ Compensation Insurance. At first glance you might think this is a crazy request. Why would anyone get and pay for insurance that offers no coverage? Also is there even such a policy and why would anyone want a such a policy of.
The answer to this question is yes. You need to purchase what is called either a Ghost Workers’ Compensation Insurance policy or an If Any Policy Workers’ Compensation policy. At this point you might be thinking this is crazy. Why in the world would I buy Workers’ Compensation Insurance to cover employees when I do not have any employees? You have to step back and think about why this request is being made. This request for this type of coverage is when you are being hired by a general contractor.
The GC will request that you provide them a certificate of insurance showing that you have general liability insurance, possibly commercial auto insurance and always Workers’ Compensation Insurance. The reasoning behind this is relatively straight forward. When the GC’s Workers’ Compensation Insurance carrier does an audit, they will request that they provide certificates of insurance from any sub contractors they hired. If they can not provide these certificates showing the sub contractor had comp coverage, the amount paid to the sub contractor will be considered wages. As a result these amounts will be included in the GC’s payroll and therefore the GC will be liable for additional premium. So for example if they pay you a $100,000 and they do not get a COI that amount will be treated as payroll. As a result their Workers’ Compensation Insurance Premium will be much higher.
It is not just large GC's that need to make sure that any sub contractors hired provide them with certificates showing they have Workers' Comp Insurance. If you have Workers' Compensation Insurance, an If Any or Ghost Policy and you paid money to a sub contractor when you policy is audited you will be requested to produce certificates from the subs showing they had coverage. If you do not those amounts will be treated as payroll and you will get a hefty bill. Finally it is a best practice to get these certificates before you let any sub start working as it is usually very difficult to get them after the fact.
How Much Does a Ghost or If Any Workers’ Compensation Cost?
A Ghost Policy or If Any Policy Workers’ Compensation Insurance Policy is generally around $1,000 per year. Again each State is different and this is just an estimate. You can use this number in working out a bid on a job that is going to require you to get this type of policy. It is important to remember to pass these costs along to your customers. It is not all bad news when it comes to these types of policies. When they are audited and you show that you had no employees and supply certificates of insurance from any subcontractors you may have hired you maybe entitled to a refund of a portion of the premium you initially paid.
What Are The Key Benefits Of Choosing FarmerBrown.Com For If Any Workers’ Compensation Insurance Quotes
We have experienced team members that can analyze and recommend the appropriate coverage for your If Any or Ghost Workers’ Compensation Insurance needs. All business with employees need coverage. Protecting your business, yourself and employees with the quality affordable insurance coverage is key. We are here to help customize this coverage to your needs.
Our team members are professional and knowledgeable and able to help you choose the perfect policy for your needs.
Having a business that needs a specialized Ghost Workers’ Compensation Insurance to cover your unique needs knowledgeable agents at FarmerBrown.com.
Flexible agents to work on your time schedule.
We provide easy online payment options.
We are licensed in all 50 States to offer Workers’ Compensation Insurance.
Same day service in most cases.
“A” Rated insurance companies that pay claims quickly.
FarmerBrown.Com has the capability to provide quotes for the hard to place risks and get you insured quickly and conveniently. We have the experience to analyze and recommend the appropriate If Any Workers’ Compensation Insurance Coverage. Call now to speak with a knowledgeable agent. Our experts can review your needs and get you the proper coverage your business deserves. They will make sure you have the coverage you need at the best price for you. Best of all, you can get a free, no obligation quote in minutes
By selecting the best policies from the nations top insurance carriers FarmerBrown.Com is able to deliver coverage that represents the greatest value for you. You can obtain a Workers’ Compensation Insurance quote by clicking above, or by calling (888) 973-0016 today to find out more about the extensive insurance programs offered by FarmerBrown.Com to reduce premium cost and risk. Let the FarmerBrown.Com team make obtaining insurance coverage trouble-free. Get the coverage you need at the rates you deserve.
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