Gild Insurance Blog

Personal and advertising injury is part of general liability insurance that protects your business from claims related to what you say, write, publish, or share¹. This coverage applies to communication and content risks such as: 

• Libel 
• Slander 
• Defamation 
• Copyright infringement 
• Invasion of privacy 
• Using someone’s likeness without permission 

This coverage helps pay for legal defense and settlements if someone claims your business harmed their reputation or misused their creative work.  Many small businesses face these risks every day through websites, social media, marketing materials, and client communication. 

What “Personal and Advertising Injury” Actually Means 

Personal and advertising injury coverage protects your business from communication and content-related risks that come from promoting your services, sharing work, or interacting with the public. It applies to non-physical claims tied to your marketing materials, online presence, and public messaging. 

This coverage can help if someone claims your business: 

• Harmed their reputation 
• Violated their privacy 
• Used their creative work without permission 
• Misused their image or likeness 

When these claims arise, personal and advertising injury coverage helps pay for legal defense costs, settlements, and judgments. 

Common Examples That Catch Business Owners by Surprise 

Many small businesses do not realize how easy it is to trigger a personal or advertising injury claim. These claims often result from everyday marketing or online activity. 

Here are some common examples: 

• Responding to a customer review in a way that is considered defamatory 
• Using unlicensed images, videos, music, or fonts in marketing materials² 
• Comparing your product or service to a competitor in a way that implies dishonesty or low quality 
• Featuring customers, staff, or models in photos or videos without proper permission 
• Reposting or resharing content that appears public but is still protected by copyright 

These situations can affect any business, especially in a digital world where content spreads instantly. 

How It Fits into General Liability Insurance 

Personal and advertising injury protection is included in most general liability insurance policies. It works alongside other core protections such as: 

• Third-party bodily injury 
• Third-party property damage 
• Legal defense costs 

While general liability insurance covers physical accidents, personal and advertising injury focuses on communication-based risks. If someone claims your business damaged their reputation or infringed on their intellectual property, this coverage helps with legal defense and potential financial losses. This protection has become especially important as more business activity moves online. 

Why Freelancers, Creatives, and Microbusinesses Should Care 

If you are a service-based entrepreneur, you depend heavily on your brand, your content, and your online presence. That makes you more likely to face claims related to personal and advertising injury. 

Professionals at higher risk include: 

• Freelance marketers and designers posting creative work 
• Photographers and videographers sharing images or project samples 
• Copywriters, consultants, and coaches publishing articles or testimonials 
• Beauty and wellness professionals posting before and after photos 
• Tradespeople and home-service providers posting project photos 
• Online retailers and creators promoting products 
• Any business with a website, social media presence, or advertising materials 

Even when you are careful, mistakes can happen. As more business activity moves online, these risks continue to grow. 

How Gild Insurance Agency Supports Independent Professionals 

Independent professionals deserve insurance that protects their work, their creativity, and their reputation. At Gild Insurance Agency, we connect you with coverage options designed specifically for small businesses and creative service providers. 

With Gild Insurance Agency, you can: 

• Get general liability insurance that includes personal and advertising injury protection
• Explore additional coverages such as professional liability, cyber insurance, and workers compensation insurance 
• Access trusted insurance partners who understand independent workers
• Receive support when questions or claims arise with our claims concierge service 

Gild Insurance Agency makes it simple to get the right coverage so you can focus on your best work without worrying about legal or reputation-related risks. Schedule a call or get a quote online today. 

Frequently Asked Questions 

What is personal and advertising injury coverage? 

This type of coverage protects your business from claims related to things you say, write, publish, or share. It includes risks such as libel, slander, copyright infringement, and invasion of privacy. 

Is personal and advertising injury part of general liability insurance? 

Yes. It is included in most general liability insurance policies as a standard protection for communication-based risks. 

What are common examples of personal and advertising injury claims? 

Common examples include using copyrighted content without permission, posting or responding to reviews in a way that is considered defamatory, improperly using someone’s likeness, or making comparisons that harm a competitor’s reputation. 

Do freelancers and microbusinesses need this coverage? 

Yes. If you post content, share work online, or promote your business publicly, you are exposed to personal and advertising injury risks. Freelancers, creatives, and service-based businesses are especially vulnerable. 

Does general liability insurance cover online content? 

In many cases, yes. Personal and advertising injury coverage applies to both online and offline communication. It can help protect your business from claims tied to websites, social media posts, ads, videos, or published content. 

How much does personal and advertising injury coverage cost? 

It is typically included in the cost of general liability insurance. Pricing depends on your industry, business size, location, and the type of work you do. 

1. https://www.iii.org/article/commercial-general-liability-insurance  ↩︎
2. https://publiclawlibrary.org/largest-ever-jury-verdict-in-copyright-infringement-case-shakes-pacifica/  ↩︎

A ghost policy is a workers compensation insurance policy for businesses with no employees, where the owner chooses to exclude themselves from coverage. The policy still provides a Certificate of Insurance, or COI, which many job sites and contracts require. It does not provide medical or wage benefits if the owner is injured. Ghost policies are not available everywhere. Some states allow them for owner-only businesses, while others restrict or prohibit them. Eligibility often depends on your business structure and state law. 

If you run a one-person operation, you may see ghost policies marketed as a simple, low-cost option. To understand whether they make sense for your situation, it helps to look at how these policies work and where they are allowed. 

What a Ghost Policy Is and How It Works 

A ghost policy is a limited workers compensation policy created for businesses with no employees. Its purpose is mainly to provide documentation, such as a COI, rather than actual injury coverage. In many states, only sole proprietors or business partners are allowed to legally exclude themselves from workers compensation benefits. 

State rules vary widely. Some states permit ghost policies under certain conditions, including: 

• Alabama 
• Florida 
• Georgia 
• Illinois 
• North Carolina¹ 
• South Carolina 
• Virginia 
• Washington 
• West Virginia 

Other states do not allow ghost policies at all, including: 

• California² 
• Colorado 

Because these rules differ from state to state, and eligibility often depends on how your business is structured, whether you can purchase a ghost policy depends on both your location and your type of business. 

Here is the simple version: 

• You exclude yourself from workers compensation benefits 
• The insurer still issues a COI for compliance 
• You meet contract or state requirements 
• You have no coverage for medical bills or lost wages 
• Anyone you bring on, even temporarily, is not covered 

It looks like traditional coverage on paper, but when something goes wrong, there is no real protection behind it. 

Who Typically Uses a Ghost Policy and Why 

You will most often see ghost policies used by: 

• Independent contractors and tradespeople 
• Sole proprietors with no employees 
• Subcontractors who need a COI to work under a general contractor 

For these business owners, a ghost policy is a fast, low-cost way to meet paperwork requirements when they truly work alone and take on lower risk jobs. 

The Benefits and the Limitations 

Ghost policies have some advantages, but the limitations are important. 

Benefits: 
• Lower cost than a standard workers compensation policy 
• Fast way to obtain a COI for jobs or licensing 
• Simple application and approval process 

Limitations: 
• No coverage for your own injuries 
• No coverage for anyone you hire, even for one day 
• Possible out-of-pocket medical bills if an accident happens 
• Some states restrict or prohibit ghost policies 
• Many LLCs and corporations do not qualify because owners cannot exclude themselves 

A ghost policy can satisfy a requirement, but it does not protect you financially. 

When a Ghost Policy Is Not Enough 

A ghost policy only works when you truly operate alone. It is not enough if: 

• You hire help, subcontract work, or bring on day labor 
• You work in higher risk environments such as construction 
• A general contractor requires proof of full workers compensation insurance 
• Your state requires actual owner coverage based on your business structure 

Even having a family member help briefly can change your liability. It is very easy to outgrow a ghost policy without realizing it. 

Better Alternatives to Consider 

If a ghost policy does not match your situation, here are stronger choices: 

Workers Compensation Insurance: Provides medical care and wage replacement for workplace injuries. Required in many states as soon as you hire anyone or bring on regular help. 

General Liability Insurance: Covers third party injuries and property damage. Often required on job sites and by general contractors. 

Business Owners Policy: Combines general liability, commercial property coverage, and business interruption insurance in one plan. 

These options offer real protection and can grow with your business. 

Is a Ghost Policy Right for You? How Gild Can Help 

A ghost policy can work for a true one-person operation, but it is rarely a long-term solution. It also depends on where you live, how your business is set up, and whether you plan to grow or hire help. 

Gild Insurance Agency can help you understand whether a ghost policy fits your situation or if another type of coverage will protect your time, income, and peace of mind. You can schedule a call with a Gild Agent or get a personalized quote online. 

Frequently Asked Questions 

What is a ghost policy?

A ghost policy is a workers compensation policy where the owner excludes themselves, which produces a COI but offers no injury coverage. 

Can I hire someone if I have a ghost policy? 

No. Hiring even one person for any period of time creates liability and leaves you uncovered. 

Do all states allow ghost policies? 

No. Some states limit or prohibit them, and eligibility often depends on your business structure. 

Does a ghost policy include general liability insurance? 

No. It covers only the workers compensation COI requirement. It does not include liability protection. 

Who qualifies for a ghost policy? 

Usually sole proprietors or partners with no employees. Many LLCs and corporations do not qualify based on state rules. 

1. https://www.ncdoi.gov/consumers/business-insurance/workers-compensation  ↩︎
2. https://www.dir.ca.gov/DWC/FactSheets/Employer_FactSheet.pdf  ↩︎