Insurance is one of those niggling expenses that you could well do without, particularly when starting a business, when you already have so many other things to spend your money on.
Unfortunately, there are some forms of cover that you are obliged to consider by law and others which you would be foolhardy to ignore.
Depending upon the the type sector of the business that you run, there are numerous situations that could potentially result in loss or injury to third parties or to your own possessions/property. It is far wiser to part with a proportionally smaller sum to insurance against each eventuality rather than face problems in the future.
Having peace of mind will allow you to concentrate on your work with one less thing to worry about.
Sadly, I have personal experience of a client who was sued by a customer and ultimately had to close because he could not afford to withstand the financial loss.
Sorry if this all sounds a bit heavy but I would prefer to labour the point and help you succeed!
This five page factsheet has been kindly supplied by Business Insurance Services Ltd, is written in plain English, and should point you in the right direction.