Light Aircraft Association

As an LAA inspector I am protected behind the insurance that I purchase as part of my LAA inspector rating. However, if I do any "work" on an aircraft I am on my own liability. If I owned/operated a company I would have liability insurance as part of my Hangar or business insurance, however, as a sole proprietor of a business that works from home I cannot benefit from any of these policies. Insurance companies that I have approached are not interested or charge such a premium that it make the proposition untenable.

I would potentially be interested in building VW conversions, but cannot get over this barrier.
Can anyone offer a way around this conundrum?

Although you're a sole proprietor, there's nothing to stop you creating your own limited company and operating under its umbrella -- many sole proprietors do this to protect themselves. (The cost of setting up a company is negligible; there is additional paperwork to consider; and a different tax regime, which may or may not benefit you depending on circumstances -- ask your accountant if you have one.)