DeFi Protocol Insurance - Is it worth the premium?

Alright, so I've been dipping my toes deeper into DeFi beyond just simple staking and lending, looking at some of the more exotic yield opportunities. I keep seeing mentions of protocol insurance for smart contract risks, and I'm trying to get a handle on whether it's truly a necessary layer of protection or just another fee eating into potential returns. I get the idea of insuring against a hack or an exploit on the protocol itself – nobody wants to lose everything – but the premiums can be substantial, especially for newer, less battle-tested protocols.

My question is, for those of you who are more experienced in the DeFi space, how do you evaluate whether to pay for protocol insurance? Is there a certain threshold of capital deployed, or a specific type of protocol (e.g., highly complex leveraged farming) where you consider it non-negotiable? Or do you mostly self-insure by diversifying across multiple protocols, essentially betting that not all of them will blow up simultaneously? Trying to figure out if my risk tolerance is out of whack, or if others are just shrugging off the insurance option.