The workers compensation line on a certificate shows something different from every other line: a statutory limit rather than a dollar figure, plus employers liability limits, usually $1M each. If you have no employees, the line will be blank or carry an exemption note, and many clients will not accept that. Who this is for: anyone asked to prove workers compensation.
The short version
- Workers compensation shows statutory limits, because benefits are set by state law rather than by the policy.
- Employers liability is the part with real dollar limits, commonly $1M each accident and each employee.
- Sole owners can often exclude themselves, but clients frequently require a policy anyway.
- A ghost policy exists mainly so an owner only business can produce a certificate.
- Waivers of subrogation on workers compensation take days and in some states must be filed.
Reading the line
| Field | What it shows |
|---|---|
| Per statute | Benefits are set by state law, so no dollar limit is printed |
| E.L. each accident | Employers liability for a single accident, commonly $1M |
| E.L. disease, each employee | Per employee occupational disease limit |
| E.L. disease, policy limit | Aggregate for disease claims |
| Y or N for officer exclusion | Whether owners or officers are excluded from coverage |
| State | Which states the policy covers, which matters for remote staff |
Exemptions and ghost policies
A sole owner with no employees can usually file an exemption and carry no policy. Two things then happen in the real world: clients ask for a certificate anyway, and if you use any uninsured help, a premium audit or an injury can treat them as your employee.
A ghost policy is a minimum premium workers compensation policy for an owner only business. It covers no employees because there are none, and its practical purpose is producing a certificate that satisfies a client. It commonly costs a few hundred dollars a year.
The multi state problem
Workers compensation is state specific. A policy listing only your home state can leave a remote employee in another state uncovered, and the certificate will show which states are on the policy. If you have hired remotely since your last renewal, tell your broker before somebody asks for a certificate, not after.
Waivers take longer here
- Ask early. Workers compensation waivers are issued by the carrier and in several states must be filed with the rating bureau.
- Expect days rather than minutes, particularly at the start of a project.
- Some carriers charge a small percentage of premium for the endorsement.
- Blanket waiver wording exists with some carriers and removes the delay permanently.
- The waiver must be in place before the loss, so a certificate issued after an injury will not help.
Related reading: workers comp for 1099 contractors.
What this looks like in practice
Illustrative example. It is typical of what we see and is not a promise of how any specific situation would be handled.
The setup: A two person firm files owner exemptions and carries no workers compensation policy, then wins work with a hospital system.
What went wrong: The hospital's vendor requirements made a workers compensation policy mandatory regardless of exemption status, and also required a waiver of subrogation.
What it cost: Binding a minimum premium policy took two days and the waiver another four, pushing the start date by a week.
The fix: Ask what a client's vendor rules require before you assume an exemption will be accepted, and start any waiver request immediately.
Frequently asked questions
Q: Why does the workers compensation line say per statute?
Because benefits are set by state law rather than by a policy limit. The dollar figures on that line are the employers liability limits, which are separate.
Q: What is employers liability?
Coverage for suits by an injured employee that fall outside the workers compensation system, commonly written at $1M each accident, $1M disease each employee, and $1M disease policy limit.
Q: I have no employees. What do I show a client?
Either a filed exemption, which some clients accept, or a minimum premium ghost policy so you can produce a certificate. Ask the client which they will take before spending money.
Q: How long does a workers compensation waiver of subrogation take?
Days rather than minutes. The carrier issues it and several states require it to be filed, so request it as soon as you know a contract needs one.
Q: Does my policy cover remote employees in other states?
Only if those states are listed on the policy. Workers compensation is state specific, and the certificate will show which states are covered.
Q: Can a client require workers compensation if I am exempt?
Yes. Exemption is a matter between you and the state. A client can still make a policy a condition of the contract, and many do.
How Morrow helps with certificates of insurance
Morrow is a licensed independent commercial insurance brokerage that specializes in certificates of insurance and the endorsements behind them. Showing workers compensation correctly, including waivers and exemptions is the kind of thing we handle every day, for clients across construction, trades, professional services, trucking, real estate, and hospitality, so we know what a compliance reviewer will reject before you send it.
- We issue certificates the same day you ask, and usually within the hour.
- We read the contract first, so the endorsements the certificate reports actually exist on your policy.
- We push back on requirements the market will not issue, and give you language your client will accept.
- We keep a record of who was issued what, so renewals go out before anyone chases you.
Get in touch and we will see how we can help. Send us the contract or the certificate request and we will tell you what your current policy can support and what needs to change. Start at morrowinsure.com or reach the team through the contact options on that page.
One more thing. This article is general information and is not legal advice or a statement of coverage. Certificates report what a policy says, and the policy wording controls in every case. Forms and requirements vary by carrier, by state, and by contract, so have a licensed advisor review your own policy and your own contract before relying on any of it.
Last updated: Reviewed by the Morrow commercial lines team. Last updated August 2026.