The owners personal insurance will not cover on the job injuries. Can someone explain how to set up and pay L & I for the Owner since there is no payroll deduction. Should it be done through a journal entry?
There is no Journal Entry. You will already have the Payment or Purchase transaction to enter, as Checking Expense or as Credit Card Charge. You don't use Debit-Credit, because you also have a Payee Name.
You don't use JE to pay rent or office supplies; you enter the Purchase or the Payment transaction.