If you are a one-man contractor working for a general contractor, you will be required to show a certificate with Workers Compensation coverage. In most states, you can elect to exclude yourself from being covered on the policy. This certificate, after being presented to the general contractor, will allow them to avoid paying premiums to their insurance company while you work for them. General contractors require this coverage because it shows your true, independent contractor status and not an employee of theirs. This is often referred to as a “ghost” Workers Compensation policy. You are a one-man operation excluded on this policy, essentially providing coverage to no one. If you are in the construction industry, there is a 99% chance that you will be asked to provide this coverage.