>Hi all.
>
>So, this is an interesting thread and my response will not be in line with most. I do have significant experience working for clients in the financial services industry (including insurance) and my wife is an insurance professional. Consequently, perhaps that will explain some of my thoughts on this topic.
>
>As opposed to “getting” or “not getting” insurance based on what a client requires, I look at it from a “how much is it worth to me to be protected” from certain financial risks. As mentioned in some of the other responses there are different types of policies for people like us and typically it boils down to General Liability (GL) and Business Owner Policies (BOP).
>
>I’ve never pocked an eye out at a client while opening an umbrella, nor dropped a 25-pound monitor on someone’s toes. I’ve never tripped at the top of a staircase, knocking a pregnant lady down the flight of stairs, nor accidentally dropped something out an open window to have it hit someone on the walking on the street below. But if any of those things did happen my GL policy will cover me, which is worth the few hundred dollars a year it costs.
>
>On the BOP side there’s a lot of coverage that can be useful to software developers as well, such as E&O (errors and commissions) which would protect me against claims that a defect in my code has caused a financial loss to the client. BOP also has protection against inadvertent data breaches, which depending on the data we’re dealing with could be sensitive. BOP policies do run higher—I think mine is somewhere around $1,500 annually.
>
>Net-Net: As with a lot of insurance the question is “how much would it hurt you if something bad happens and you don’t have insurance?” Of course, no one expects to get into a car accident or accidentally stab a client with scissors while handing them off, but stuff happens. If you have assets and income you want to protect insurance—along with setting up an LLC or other entity for your consultancy—should be something to consider.
>Personally, I consider insurance a cost of doing business.
>[Note to self: Perhaps I was supposed to be an insurance salesperson?]
>
>Hope this helps!
>
>http://www.jcn-associates.com

CFO 101: Don't spend more to protect an asset than the value of the asset (e.g Don't guard a piggy bank with a Sherman tank)

If you're a corporation (as I am) the largest exposure is the net worth of the corporation.
Keeping that value at a minimum is the simplest way to reduce the exposure.