It's totally understandable if you don't want to sell/market your business or you just don't want the unpredictability which is probably greater than with a larger company. But, oh no, I might be sued should almost certainly not be a major consideration relative to other factors.

"Just" an indemnity clause.

First, you don't really know whether that'll hold up in court until it happens.

Second, by the time you're done with the court case, you'll have spent a tremendous amount of time and energy. Not only is that stressful by itself, it's also a big distraction from running the business, and every day you are busy with the court case you'll wish you were spending time working your business. The smaller you are, the more impactful distractions are.

This ignores the fact that nothing is stopping someone from suing you personally today, small business owner or not.

There are two types of people who sue:

- rational actors who have acted in good faith, exhausted all avenues of recourse, and feel like the courts are their only hope for some sort of resolution.

- irrational actors who sue for weird personal reasons, can’t be reasoned with, refuse all attempts to come to a reasonable settlement, etc.

You definitely want the first type of person as a customer.

Again, nothing is stopping anyone from suing you personally right now.

Not everyone lives in a litigious society like the US. Here in Europe if you try to sue an employee for work related stuff you'll be dismissed pretty quickly on the grounds that you need to be suing the company instead.