There is no big line of greedy lawyers waiting to rip people off.
Maybe not in Australia but the US, Yes.
Liability and frivolous lawsuits are the biggest dangers in new product development and operating a business here in the States.
Bob's reasoning for not having insurance is spot on... but also highlights the flaws in that the insurance is not there to protect you but to protect you and your assets from the lawsuit resulting from an accident.
Sadly, his level of debt does not protect him from the courts which may take everything.
He is lucky that Florida is a more conservative and sensible system than say California so if the situation were to unfortunately develop he has a better chance but it will still require the cost of a lawyer to defend himself.
Australia is a great place but live in the US for awhile, we may have a similar language but it is different beast.