Insurance Question

I have worked for a roofing company now for some time and have decided to go out on my own. I have heard some talk about a WC ghost policy. What exactly is that. I ask because my old boss would hire crews off the street to work for him and he would not even know their names. So, I know he did not pay WC. He would also pay some crews half check and half cash. When I would call the insurance co. for proof of ins. for clients I had to say !@#$ and associates. He did not want them to know that it was a roofing co. they were insuring. Any advise for a newbe. I want to be as legal as possible but I also, don’t want to go broke.

Your old boss was cheating to the maximum level.

Wait until he either gets caught during an audit, or someone gets injured.

He will lose everything.

If you must try it, the best way is to do the work yourself and you can, in most states, exclude yourself from the policy, but you still have to pay a minimum, even though no one is covered.

The other option is to hire subcontractors to do the work for you, BUT, they MUST have their own Workers Compensation and their own General Liability Insurance.

The way to ensure that they do not give you a Fake policy, is to get the insurance agent to have you listed as an “Additional Insured”. This way, if they cancel their policy, the agency will have to report directly to you, that it is no longer in existence.


I agree with Ed on this one… Your old boss is the reason why good guys have to pay so damned much for WC. When you cheat, sooner or later, they will catch you. Give me a call or email if you have more questions about your WC.

Wow, watch out for that kind of idea. I’ve seen too many contractors lose their shirts thinking they can get away with not having workers’ comp. It’s one of the biggest expenses for employers, but very important.

I’d like to talk to you or anyone who is interested in lowering their workers’ comp rate. I’m a small business owner, too, and I work exclusively with contractors. My services are free, and can save you thousands every year!

Give me a call or email me. I’m looking forward to helping you!