Community Goal systems are always going to be full of hostiles. The bonus to this is that while they're swarming around the systems involved in the CG's, they're not pestering people in systems a hundred or so LY away. Find a likely prospect, bounce out there, and make some trade runs, grab some missions or farm a RES for bounties. You get to stay in Open and make some fast cash with a lower chance of being harassed in the process.
The amount you pay for insurance is minimal. 5% or less of the value of the ship you're flying, depending on the level of discount you have. Personally, I don't think death penalties serve any useful purpose in modern gaming (and I know game devs with the same opinion) but the one we have is low enough to be manageable if you're careful.
Insurance cost is indeed low, but anyone doing events is also carrying varying amounts of labor or resources with them in form of bounties, bonds or cargo. These are fully lost when you die on top of the insurance. If you take steps to reduce that risk, you also reduce your profits per time unit spend (like bringing in bounties in 500k lots), in some cases by huge amounts.
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