5.    “I am already incorporated or have an LLC so I am protected.”
One layer may not be enough. The key is not to put all your eggs into one basket. If you’ve been in business for 4-5 years with just one entity and that entity is sued and you lose, and your insurance does not pick up the entire tab, you will lose 4-5 years of hard work and countless hours of effort  down the tubes. The more success you have the more protection you need!