Many insurance policies you will buy will often include an element of liability cover. With this liability insurance you will also receive cover for any legal expenses involved in defending an incident. This particularly applies to motor, home and travel insurance.

Unfortunately, the legal cover afforded under theses policies is designed only to defend your interests when being sued for damages by a third party. It will not cover any actions which you need to instigate.

The expensive legal costs in pursuing an action can often put many people off, especially as there is never any guarantee of success. The multitude of 'no-win-no-fee' solicitors will normally only be interested in helping you if it is for a high fee earning personal injury case, with overwhelming likelihood of victory. The legal aid system (now called Community Legal Service) is only available under certain circumstances and is dependent on your income. On their website they provide a very useful calculator to check your eligibility.

A family legal protection policy will only cost in the region of £15 per year and is an excellent addition to your home insurance policy. Standard cover is typically for a sum insured of £75,000 in the following circumstances:

• Personal Injury. Pursuing a claim for damages for injury or death due to the negligence of a third party

• Pursing or defending a consumer dispute for faulty good or services

• Home Rights. Pursuit of an infringement of your legal rights arising from your ownership or occupation of your home

• Taxation. Professional Fees relating to an in-depth Inland Revenue investigation of your personal tax affairs

• Employment. Contract of employment disputes

• Defence against criminal prosecution.