What is one reason someone might opt for more than the standard liability coverage?

Choosing more than the standard liability coverage is often driven by the need to protect against high-value lawsuits or claims. Standard liability coverage may not provide sufficient financial protection in the event of a serious incident that leads to significant damages or legal costs. For individuals with substantial assets, the risk of losing those assets in a lawsuit can be considerable. Therefore, opting for higher coverage limits is a prudent decision to ensure that they are financially safeguarded against potential liabilities that exceed the basic coverage level.

In contrast, compliance with government regulations typically does not necessitate exceeding standard liability coverage amounts, as laws often dictate minimum requirements rather than higher limits. Additionally, increasing liability coverage generally leads to higher premium costs rather than lower payments; thus, it does not align with reducing monthly premium payments. Lastly, standard liability coverage is often not designed for business-related activities, making it less relevant for covering injuries related to business pursuits. Therefore, the strategic choice to increase liability limits stems largely from the desire to guard against substantial financial risks associated with high-stakes legal claims.