Insurance questions for owner-only businesses

An owner-only business should describe what the owner actually does before comparing insurance. Office administration, consulting and hands-on work can raise different questions. Being the only person in the business does not establish an insurance exemption or show that a policy meets a client's requirements.

Describe your work and everyone involved

Prepare a short list of services, job locations and typical clients. Explain whether you work at customer sites, use equipment, drive between jobs or provide professional advice. Include changes you expect during the policy period.

List owners, officers, employees and anyone helping with the work. Explain whether you use subcontractors or occasional helpers. Ask the agent to review classification and applicable state rules using those facts. A label such as contractor or owner does not settle the insurance question by itself.

Separate your business coverage questions

General liability can help with certain third-party injury or property-damage claims. Professional liability may address claims involving errors in professional services. Property and vehicle exposures involve their own terms. These are discussion points, not a recommendation to purchase every policy.

Have the agent distinguish a policy covering business risks from one addressing employee injury exposures. Ask what the proposed workers' compensation policy says about owners and officers, and whether any exclusion or election is actually recorded. Do not assume the owner is personally covered or excluded.

Read the client's insurance clause

An owner-only contractor may receive an insurance request even without employees. Send the full contract clause to the agent, including any requested limits, endorsements or certificate wording.

Ask these questions:

• Which policy is the client requesting?
• Does the proposed policy include or exclude the owner?
• What work and locations are described in the policy?
• Can the insurer provide the requested endorsements?
• What information can appear on the certificate?
• Who confirms whether the documents satisfy the contract?

A certificate does not change policy coverage. A policy sometimes described as a ghost policy may exclude the owner's benefits; the actual terms and applicable rules determine its treatment. Do not rely on that nickname as proof of protection or compliance.

Prepare for changes in the business

Speak to the agent before hiring employees or changing how helpers are engaged. Explain new duties and payroll rather than assuming the existing arrangement automatically accommodates them. Review client requests separately from legal requirements.

Next step

Use Ghost Policy Insurance's form with your business location and owner-only work details. Bring the client's insurance clause and any existing policy. Insurance basics explains terms you may encounter during the review.