Liability insurance is there to provide legal defense and pay for bodily injury and property damage claims. The purpose of liability insurance is to protect your assets. Are in the situation where the value of your assets exceeds the limit of your liability insurance. If that is case for you then sometimes the coverage limits in our automobile and homeowner policies are not enough. Litigation today results in more and more jury awards for hundreds of thousands or millions of dollars. An umbrella provides extra protection of $1 million or more.