When you are young and don’t have much to your name, you don’t spend a lot of time worrying about “asset protection.” But as you get older and start to accumulate some assets (and also realize how damn hard they are to accumulate), you have to start protecting those assets from being taken away from you!
Largely this would include something “bad” happening at your residence, like your dog mauling the neighbor's kid. Or while driving your car, you hit and maim someone. Beyond that, you could perhaps get sued for slander or something weird like that.
2. In your business life…
If you make your living as a freelancer, independent contractor, or own any kind of business, you are always more open to lawsuits.