I'm not a lawyer, so the following is only my understanding and opinion.

First find out what protection the laws in your state offer. In many states, IRAs and 401k plans are protected from judgments. Some states also protect a primary residence; in those states you could shield additional assets from judgment by paying down or paying off your mortgage.

I look at liability insurance as pre-paid legal counsel. After all, one can be sued for any amount. Let's say you have one million dollars in assets and one million dollars of liability coverage. What's preventing a plaintiff from suing for two millions dollars? Not much, I'd imagine.

The larger the liability policy you purchase, the more motivated the insurance company will be to get a settlement for less than the policy coverage. In my mind, that's really the source of one's protection.

Regards,

Duane