H.W.
I agree with the other posts in that he will outgrow this fear and it is TOTALLY normal. One thing that I've noticed that has helped with my little girl is telling her that the bugs are way more scared of her than she is of them, and why not, look at how much bigger she is than they are. My little girl went from being meltdown terrified to feeling sorry for the bugs because she was scaring them. She still won't get too close, but tries to "comfort" them from a distance. "it's ok, bug, I won't hurt you", quite funny to watch.
And J. to let you know that kids this age develop completely irrational fears, last year when re-doing our 11 year old son's bedroom, our daughter developed a fear of masking tape. Yes, masking tape and any time she saw a piece on the floor, she would have a meltdown. It was next to impossible not to laugh even though she was obviously terrified. It was a short-lived phobia, as are alot of fears that they have at this age. So don't worry, your son is completely normal and he'll outgrow this before you know it.