The first thing I would consider is protecting your personal assets. If you are a sole proprietorship then your personal assets may be at risk since there is no legal separation between you and your company. This means that you can be held personally responsible for any debts, obligations, or liabilities occurred by employee action. The draw back is that incorporating has additional costs and formalities that must be satisfied.
The next thing you can do to protect your business is to purchase an Umbrella policy. These types of policies are designed to protect your business and you from major claims and lawsuits. they provide additional liability coverage beyond the limits of most policies, and provide coverage for claims that may be excluded by other liability policies.
I hope that this helped. If you ever have any questions on retirement plans, group health or life, or key person plans feel free to me since these are more my focus. Best of Luck!