There is probably nothing scarier than the first time someone says they are going to sue you and you realize they mean it.
Most people see the loss of money, or worse, the loss of their car and their home.
I've had people ask if they can wind up in jail if they lose a lawsuit. One of my clients told me she spent hours worrying about some ogre in an Armani jacket ripping her from limb to wallet. Even those who've been through lawsuits know that the experience will eat them up hours of time and cause them serious emotional capital. To cite a personal example, when I drive my car I know that I must carry enough insurance to protect my assets, not the minimum necessary to satisfy the law. You plan, before you commit.