EXCESSIVE LIABILITY COVERAGE
Liability insurance provides coverage when you’re sued or other legal claims are brought against you. It can be important, and sometimes mandatory (e.g., auto insurance), to hold some amount of liability coverage.
Higher limits come with higher rates, though, and there is a point at which the amount you pay for the amount of coverage is not statistically advantageous. With auto insurance, for example, you pay a hefty fee for a high liability limit when less than 5 percent of accidents result in claims that large.
