It's hard for this to inspire the wholehearted trust it would take for me to feel ok putting not just mine buy my children's future on the line. Midwifery is a demanding field for families anyway, I can't imagine missing 3 Christmas mornings in a row and then losing their college savings too.
I also don't understand how trusting clients is reconciled with the idea (fact?) that more of them tend to sue if you have insurance. If you trust that they won't sue because of a relationship you've established, why should that change if you have insurance? I ask that not adversarily, but truly...do you think the relationship you have changes just by holding insurance?
The reason why clients might be more likely to sue if you carry malpractice is that they will feel that they aren't hurting you as much personally. Also, if someone else is sued related to a birth that you are part of, the likelihood of your being named a co-defendant is higher if you have malpractice.
For me, it boils down to value -- a policy that costs thousands of dollars per year to protect my almost non-existent assets against a lawsuit is not a good value. I'd rather stick all of that money in a ROTH IRA and call it a "legal defense fund" and use it to retire to a little beach shack in Belize after my midwifery career is over than to give it to the insurance co.. Insurance companies are for-profit entities, in general. If they don't take in more than they pay out, then they would cease to exist. I understand their worth, but for me and my individual situation, the math doesn't work out.