If a lawsuit settlement or court-ordered payout exceeds your insurance limits you could end up having to pay the difference out-of-pocket. There are two solutions to this problem.
The first is to carry as much coverage as you can afford, and the highest level of coverage on offer. Lawsuit costs can skyrocket quickly.
The second is to carry umbrella insurance. This form of insurance coverage is designed to make up the difference when your basic liability policy just can't get the job done.