Situations covered by legal protection insurance can include liability issues, work-related problems, tenant-landlord issues, and others. Crimes perpetrated by the policy holder and marital problems generally are not covered under legal protection insurance.
There is generally no deductible for legal protection insurance, although most policies do not accept claims for less than $3,000, which is the amount that would be covered under a small claims court. There may also be a cap on the upper limit amount of award that can be given for a claim. Legal protection insurance is designed to protect policyholders for unforeseen legal problems, such as liability if a person is unwittingly injured or his property destroyed by the policyholder.
Legal protection insurance policies can be obtained for a small annual premium, and they usually cover every person in the policyholder's immediate family (spouse and children). Legal protection insurance policies can also be written to cover small businesses that are owned by the policyholder.