Since operating a website is like operating a virtual real estate, I wondered if there is need for business insurance.
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Since you can still be sued you should get Commercial property (your computer, desk, phone, fax, etc), commercial building if you own the building that you work from, this should include commercial general liability. You should have workers comp for any & all employees. Be sure to tell your agent where you are doing business (US only, worldwide, etc). Also, you may want professional liability depending on what your business entails.
No not at all
Unless they come to make a hard contract with you ! in physical letter form
Beware of frauds
Good Luck