IT Contractors - liability insurance question/survey

Coming up time for my liability insurance renewal, and like every year I'm a little dismayed by the cost of the premiums - (about $2.5K for $1M cover) and questioning whether it's worth keeping.

I've now got a broker looking at different options to see if that cost can be reduced (doubtful), but curious as to what other IT contractors are doing.

How many of you have/don't have liability insurance? If you do have, how much cover do you have?

Another option I've considered is changing to a limited liability company - which seems almost a no-brainer. (I have no assets other than a laptop and no need for credit/debt, so wouldn't need to provide personal guarantees to banks etc. I assuming I'll need new contracts with all of my clients and they might not be too excited at the change). Has anyone gone down this path instead and knows of any disadvantages?