Ghost Policies are Not Just a Halloween Trick

Posted on: October 1st, 2012 by Bain & Rodzik

It’s that time of year when witches and vampires roam the streets in search of delicious candy corn and other Halloween treats. While ghosts are easy to find on Halloween night, ghost policies for workers compensation may not be as easy to spot. These limited policies can be dangerous for any worker who is injured on the job.

A ghost policy is a worker’s compensation insurance policy that is used by business owners with no employees, who want to exclude themselves from the policy. In North Carolina, businesses with three or more employees are required by law to buy insurance that will cover workplace injuries. Many owners of a small business will classify workers as independent contractors instead of employees to avoid the high cost of insurance premiums. This scheme is a great money saving trick for employers, but leaves injured employees with no coverage and expensive medical bills.

The ghost policy was originally designed for small businesses with only one employee who is also the owner of the company. This inexpensive coverage was intended to be a back-up plan if they were to hire another employee later in the year. Unfortunately, some employers have taken advantage of this policy, with little or no concern for the safety of their workers.

In many cases, workers are never informed of the ghost policy, and assume that they will be covered if an injury occurs. This type of policy has become a serious issue in North Carolina, especially in the construction industry. Right now, there is little to no regulation of ghost policies issued by insurance companies.

If you have been injured in an accident at work, you should be compensated for medical costs and loss of wages. If a ghost policy is in place, you have the option to take your employer to court to fight for the compensation you deserve. For an experienced worker’s compensation lawyer in Wilmington NC, contact Bain and Rodzik today. Our attorneys have the skills to help you win your case and get your life back to normal. If you have questions about ghost policies or any other workers compensation law, feel free to call us at 910-762-1199 or email us through our website at

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