I'd like to get your views on this.  I am an LLC, an abstractor, working alone with no employees.  A friend is a sole proprietor, also an abstractor.  We both carry E&O.  I feel that being an LLC is a better option, safer option, than a sole prop.  My friend feels that as long as she has E&O she is protected without having to form an LLC. (We both have a million dollar E&O policy.)  And by protected I mean from anyone coming after you personally for any liabilty related to abstracting/running your business as an LLC or sole prop.   She thinks that forming an LLC is a waste of time and money. She says her E&O will protect her from any title related claims, and as far as any other business issues, well what could possibly happen to a one person operation with little overhead.

I'm from the better safe than sorry school, but she thinks its redundant.  What do you think?