I think you are in a very difficult position.

i want to say terminate effective immediately as the requests about insurance make me worried he is going to try and sue you. But, i would NOT give him 2 weeks notice (or what ever you have in your contract) because there is a strong chance he would use that notice period to either sue or make your life miserable.

But, I would also worry about giving notice of termination effective immediately as he may use that as a reason to try and sue you.

Frankly, I don't know what to suggest. DOCUMENT EVERYTHING
Every single time he mentions insurance or anything else. Write it down. Immediately. Date, Time, situation and what he says and your response. If anything does arise later you will need this in court.

Any time he arrives late or anything out of the contracted terms document it. You will need concrete evidence.