The US Ultralight Association offers through an affliliate very low cost liability insurance for LSAs. Last time I checked it was under $450 per year.
"Class 3: 993-1,150 lbs. maximum takeoff weight"
http://www.usua.org/Insurance/
http://www.firstflightinsurance.com/
The two possible showstoppers are the aircraft had to be certified/listed as having a maximum takeoff weight not more than 1150 pounds. Many LSAs fit that, but not all. The other is they don't sell hull insurance -- won't insure your plane against damage. The other minor catch is you have to join the USUA -- be a member -- to get that deal.
"First Flight also offers a more extensive coverage package for commercial flight school operations, and has done so for many years. The program includes commercial general liability for the school's premises plus 3rd party and participant liability. If you are a CFI, USUA encourages you to look into the commercial program. "
Alex
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