If someone wanted to start up a consulting business (out of the home, no other employees, etc.), what sort of insurance should they get to protect themselves?
The person would be looking at professional liability insurance. It’s basically the same idea as the malpractice insurance carried by doctors, lawyers, and other professionals; but without knowing more about the kind of consulting the person is doing, I cannot comment on what kind of professional liability insurance he or she would need. Check with an insurance agent or broker–even if the agent or broker doesn’t deal in professional liability insurance, he or she could refer to someone who does.