Gaslamp is pleased to announce that we now offer sole proprietors and independent contractors – from plumbers to landscapers, electricians, and many others – the ability to show proof of Workers’ Compensation insurance with a Ghost policy when bidding on a project. This is especially critical for California contractors under the state’s new Workers’ Compensation law.
In 2023, California passed a law requiring all licensed contractors—even those without employees—to have Workers’ Compensation coverage by 2026.
What Is a Ghost Policy?
A Ghost policy is based on payroll, much like traditional Workers’ Compensation insurance. However, as there are no employees with no payroll, a Ghost policy typically costs less than traditional Workers’ Comp insurance.
Unlike traditional Workers’ Comp insurance, a Ghost policy provides no coverage or benefits. It enables you to comply with state laws. Also, a Ghost policy makes sense if a potential client will not work with you unless you have a Worker's Compensation certificate of insurance. You can bid and land more projects.
Workers’ Comp for Paper GCs with Subcontractors
As a paper general contractor, you may use a number of subcontractors on a project, although you have no payroll. You also need to provide proof of Workers’ Compensation coverage.
Our program also offers Workers’ Compensation to paper general contractors with a subcontractor exposure of over 50% and up to 100%. If your project involves a high percentage of tradespeople, and you need to show proof of coverage, our program is right for you.
NOTE: Consult with your legal professional and the applicable state statute and regulations regarding your business operations and Workers’ Compensation compliance.