I am in the process of getting a Level I Homestead License and I was curious as to what level of liability insurance people acquire. Also, is there a way to cut down on liability insurance if I make my business be an LTD instead of a sole proprietorship.

Thanks in advance...Christina

You will want general liability as well as product liability, I would recommend $1M of coverage (there probably won't be a significant difference in premiums for lower coverage amounts).

I doubt liability insurance will cost less if you set up an LLC, but creating the LLC is still an important step to shield your personal assets from business risk.

More info:
http://sbinformation.about.com/od/insurance/a/liability.htm