Insurance 101 · Owner-only businesses
Owner-only businesses: Insurance 101
Learn insurance basics for owner-only contracting businesses: operations, liability, people, equipment and policy questions.
Start the guideEducational information, not a coverage determination. Examples are hypothetical. Policy wording, exclusions and underwriting decide whether coverage applies.
Module 1 / 6
Start with the work you actually do
The key takeaway
Describe every activity, not just your business name.
Insurance is a contract with an insurer. You pay a premium, and the insurer handles covered losses under the contract. A licensed agent helps you understand options; the insurer decides what it will offer. A business name alone does not explain all your activities.
In your day-to-day work
An owner-only painting or repair business may later hire a helper or use subcontractors. Tell the agent about everyone doing work, not only people paid through a payroll service.
Ask before you buy: Does the application describe every service, location and activity I want the insurer to consider?
Module 2 / 6
What general liability is for
The key takeaway
General liability does not cover every business risk.
General liability can address certain claims that your business caused injury to another person or damaged someone else's property. It is not a policy for every business risk. Read the exclusions as well as the headline limit. Ask how the policy treats damage connected to your work.
In your day-to-day work
A client may ask for both general liability and workers' compensation evidence. Those policies serve different purposes; a workers' compensation certificate does not replace liability coverage.
Ask before you buy: Which injury and property-damage claims are included, and which are excluded?
Module 3 / 6
When one coverage is not enough
The key takeaway
People, equipment and vehicles need separate coverage questions.
Workers' compensation, business property and commercial auto address different risks from general liability. Do not assume one policy includes them all. A package can combine some coverages, but its actual forms still matter. Requirements for employees depend on the state and the facts of your business.
In your day-to-day work
A ghost policy commonly refers to owner-excluded workers' compensation with no employee payroll. An excluded owner should not expect that policy to pay their own work-injury benefits. Eligibility depends on state rules and underwriting. An owner carrying tools to jobs can face equipment and vehicle risks even without employees. Owner exclusion under workers' compensation says nothing about those risks.
Ask before you buy: Which risks need a separate policy or an added coverage, and what remains uninsured?
Module 4 / 6
Read beyond the certificate
The key takeaway
A certificate is a summary, not the policy.
A certificate of insurance summarizes information; it does not replace the policy. Review the named insured, covered operations, dates, exclusions and endorsements. Endorsements change the policy. A requested additional insured is a person or business seeking protection under your policy, subject to the actual endorsement.
In your day-to-day work
If a contractor asks for a certificate, confirm the actual contract requirement and owner exclusion. Do not treat a certificate as proof of personal injury protection or assume zero payroll guarantees no audit charges.
Ask before you buy: Can you show me the wording that addresses this activity and this contract requirement?
Module 5 / 6
Compare limits, costs and claims steps
The key takeaway
Compare what you pay and what the policy can pay.
A limit is the maximum payable under a stated part of the policy. A deductible is an amount you may have to pay toward a covered loss. An aggregate limit can cap payments across multiple claims. Compare these terms, exclusions and fees alongside premium. Ask how and when to report a claim before an incident happens.
In your day-to-day work
An owner carrying tools to jobs can face equipment and vehicle risks even without employees. Owner exclusion under workers' compensation says nothing about those risks.
Ask before you buy: What would I pay myself, what limits apply, and who do I contact to report an incident?
Module 6 / 6
Get ready for a useful quote
The key takeaway
A quote does not mean coverage has started.
Prepare your business details, locations, activities, revenue, payroll, equipment and claims history. Include your current policy and contracts that request insurance. Accurate answers help avoid mismatches. A quote is not proof that coverage has started; confirm the effective date and any remaining conditions before relying on it.
In your day-to-day work
Prepare ownership and entity details, trade activities, work states, employee and subcontractor information, contracts and current policies. Report staffing changes promptly and ask how audits are handled.
Ask before you buy: Are the application details correct, and what still needs to happen before coverage takes effect?
Go deeper
Explore the detailed coverage guide
Reference material
Published by Ghost Policy Insurance, operated by Kinro. Updated September 15, 2026. Examples are hypothetical, not coverage determinations.
SBA: business insurance basicsVirginia Workers' Compensation Commission: employer FAQs (Virginia-specific)
Texas Department of Insurance: certificate limitations (Texas-specific)
Check your options
A ghost policy is not personal work-injury protection for an excluded owner. Use the existing eligibility check to review your situation.
Check eligibility