liability coverage can be either personal liability, such as someone
being injured on your property, and PRODUCT liability, which covers you
if a person using your product is injured.

If you weld a bracket to hold something on a trailer for example and
the weld breaks for whatever reason you could be sued for resulting
damages.

You can try to limit some of your liabilities with a contract but you
need legal advice for your specific state.

Insurance costs vary considerably from region to region. Insuring tools
is often high cost because of the risk of theft.

Ask about fairly high deductables on specific items.