The answer is "yes": you should incorporate and you should have insurance. Being a corporation will protect the owners (shareholders) and managers of the corporation from most personal liability, but not all: there are times when they could be personally liable, such as if they personally act in a wrongful or negligent manner (in which case, liability is based on their personal action or omission, not on their membership in the organization).Having insurance will provide protection where the corporate structure does not shield individuals, and will also protect corporate assets.