Business insurance is no joke.  It is a critical consideration when you are starting up any small business.  Proof of insurance will be required by most of your clients (and even if it isn’t, it only helps your image if you supply it).  Additionally, if you intend to apply for external funding in the form of grants or loans, the lenders will also require proof of your insurance.  If you don’t carry complete buisiness insurance, you could find yourself on the receiving end of a very bad lawsuit.