Blog/Ghost Policy Florida

Workers Comp Ghost Policy Florida:
What Contractors Need to Know in 2025

A ghost policy gets you a COI with no employees covered. It's legal, it's cheap — and it can destroy your business if you use it wrong. Here's the full picture.

📍 Florida·🏗️ Construction, Roofing, Towing·⏱ 5 min read

What Is a Workers Comp Ghost Policy?

A workers comp ghost policy is a workers' compensation insurance policy where the business owner is the only named insured — and is excluded from coverage. There are no employees on the policy, no payroll, and no actual benefits paid if anyone gets hurt. The policy exists for one reason only: to generate a Certificate of Insurance (COI).

General contractors, property managers, and job sites in Florida routinely require every subcontractor to show proof of workers' comp before they can work. A ghost policy satisfies that requirement at the lowest possible cost — typically $800–$1,500/year — when you have no employees.

⚠️ The Critical Catch

A ghost policy covers no one. The moment you hire a worker — even one day laborer paid in cash — you are operating without workers' comp coverage in Florida. That exposes you to a Stop Work Order, $1,000/day fines, and personal liability for any injury.

Who Qualifies for a Ghost Policy in Florida?

To use a ghost policy legally in Florida's construction industry, you typically need to:

  • Be a sole proprietor or single-member LLC with no W-2 employees
  • Have filed a valid Certificate of Election to be Exempt with the Florida Division of Workers' Compensation
  • Not use uninsured subcontractors (you are responsible for their coverage)
  • Operate in a trade where the class code is eligible for a ghost policy (not all carriers write them for roofing or structural steel)

You can verify your current exemption status at the Florida DFS Exemption Search portal.

Ghost Policy vs. PEO Workers Comp: Side-by-Side

FeatureGhost PolicyPEO Workers Comp
(Comp Ninjas)
Covers owner injuries❌ No✅ Yes
Covers employees❌ No✅ Yes
Covers uninsured subs❌ No✅ Yes
Generates COI✅ Yes✅ Same day
Annual cost (solo)$800–$1,500$875 setup + payroll-based
Audit riskLow (no payroll)None (pay-as-you-go)
Scales when you hire❌ Must cancel & replace✅ Add workers instantly
Hard-to-place trades (roofing, towing)Often declined✅ Specialty

When a Ghost Policy Actually Makes Sense

A ghost policy is the right choice in a narrow set of circumstances:

  • You are truly solo

    You do all the work yourself, never hire helpers, and have a valid Florida exemption on file.

  • You only need a COI for one job

    A short-term project requires proof of coverage and you have no plans to hire anyone.

  • Your trade is low-risk and eligible

    Some carriers won't write ghost policies for roofing (5551), structural steel (5040), or towing (7219). If your class code is declined, a PEO is your only option.

If any of those conditions don't apply — if you ever use helpers, subs, or day laborers — a ghost policy is a liability, not a solution. The smarter move is a PEO workers comp program that covers everyone from day one.

Frequently Asked Questions

How much does a ghost policy cost in Florida?
Typically $800–$1,500/year depending on your class code. High-risk trades like roofing or towing may be higher or unavailable.
Can I get a ghost policy if I have subcontractors?
No. In Florida's construction industry, if you use uninsured subs you are responsible for their workers' comp. A ghost policy does not cover them. You need a real policy.
Is a ghost policy legal in Florida?
Yes, for qualified exempt owners with no employees. Using one when you have workers is a serious violation — Stop Work Orders and $1,000/day fines are common.
Can roofers get a ghost policy in Florida?
Many carriers decline ghost policies for roofing (class code 5551) because of the high-risk classification. A PEO workers comp program is typically the only option for Florida roofers who need a COI.
What happens if I get caught with a ghost policy and employees?
Florida DFS can issue a Stop Work Order immediately, fine you $1,000 per day of non-compliance, and hold you personally liable for any injury claims. The penalties are severe and enforcement is active.

Need a Real COI — Not a Ghost?

Comp Ninjas specializes in hard-to-place trades — roofing, towing, construction, trucking. Same-day COI. No deposit. PEO-backed coverage that actually protects you.

Get Covered Today →

$875 setup fee · No deposit · Same-day COI

Related Articles