Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is likely to be higher, then you may consider an umbrella insurance policy.

We also picked up an Umbrella Policy for our personal assets as well.

Umbrella Insurance  is a good way to protect assests or some people use both .

some people are saying save your $800 and buy umbrella insurance.

This carrier essentially underwrites a package deal tailored to your business, bundling all your policies under a single umbrella, which could include General liability, Umbrella protection, and (obviously) property. 

I have a mix use building in CT. the ground floor tenant is a bar/restaurant that recently moved in. they got a $2M General liability insurance and is asking if that's enough. or if they should get an umbrella. the property is valued at around $700k, fyi. where can i read up on best practices for such a case?

And an umbrella entity to simplify management.  

Just make sure that he won't be viewed as an employee in case L&I does an audit, ie one relationship and all spending under your umbrella might be viewed different.

Get the umbrella policy. 

This can be beneficial for a few reasons:Separation of Personal and Business Assets: Moving the property under your LLC’s umbrella through a DSCR loan will allow you to separate your personal liabilities from your business assets, which is crucial as your portfolio grows.