Of course, I don't know their policy, but the company I work for will keep up to $5M policy to cover the legal fees and a settlement if under the total.

If a company plays in the consumer products world, as I do, this type of policy is very necessary in our litigous society.  Other industries have different issues that demand strong insurance policies -- like yours and medical Drs -- that can really do some damage to your wallet.

My guess is your coverage is pretty stiff in CA.  I know my Dr. brother's is over $40K a year for his clinic in MO.

On a few occasions, the opposite side legal team has informed us of their clients limited coverage and suggested we go for only that amount so they can sell the deal to their client.  Coverage is a factor.

John