Insurance is for the machine, supplies, plus the quilts you have on hand etc. If you have a fire or a water main breaks, does your homeowner's cover the "business" if you are working out of your home? You may just need an additional rider.
I disagree with the poster who said the Small Business Development Center is not helpful. Ours is excellent. Now that doesnt mean that you will get a loan or be successful, just that they will provide you with a counselor, classes and advice. All for free or maybe 10 bucks. They are your resource center for government loans although that is only a smidgen of what they do. I am a volunteer counselor for the center plus in a couple weeks I will be attending a two hour seminar on advanced marketing concepts.
I think it's a whole lot smarter to talk to business people who have no vested interest in selling you a machine or supplies to help with the decision.