It's entirely possible that she could in fact have the insurance, since this probably isn't the sort of business where an underwriter would feel a need to check licensing compliance.  The only way that you can find out for sure is to ask for a certificate of insurance, which the owner should be able to get from her insurance agent without any real trouble at all (it's a one-page form, that the agent's computer can probably kick out in about a minute) -- if she does have the insurance.