Ghost policy
An informal label for a minimum-premium workers' compensation policy that may show coverage exists while excluding the owner and carrying little or no covered payroll at inception.
“Ghost policy” is industry shorthand, not a uniform statutory product name. The term is commonly used for a minimum-premium workers' compensation policy issued to a one-person or owner-only business where the owner is excluded and there may be little or no covered payroll at policy inception.
Official Wisconsin guidance describes a comparable minimum-minimum premium policy that can satisfy a contractual policy requirement without covering the sole proprietor, while a North Carolina Business Court opinion records the phrase “ghost policy” for a minimum-premium policy that did not cover anyone. The nickname does not determine worker status, policy scope, or audit treatment.
Where this definition comes from
Glossary entries are anchored to a state agency, statute, board, commission, or recognized workers' compensation authority rather than a generalized summary.
More terms
- Additional insured
- Agricultural/farm labor exclusion
- Assigned risk pool / residual market
- Casual employment
- CE-200 (New York)
- Certificate holder
- Certificate of election
- Certificate of insurance (COI)
- Civil penalty (uninsured employer)
- Class code
- Competitive state fund
- Construction vs non-construction classification