). ▁The ▁prem ium ▁is ▁generally ▁paid ▁on ▁an ▁annual ▁basis . ▁ ▁The ▁extent ▁of ▁the ▁cover ▁depends ▁on ▁the ▁type ▁of ▁contract ▁and ▁is ▁defined ▁in ▁the ▁policy ▁terms ▁and ▁conditions . ▁When ▁the ▁policy ▁is ▁sold ▁as ▁part ▁of ▁a ▁home , ▁motor ▁or ▁travel ▁ins urance ▁package ▁( i . e . ▁add - on ▁policy ) ▁it ▁only ▁covers ▁disput es ▁strictly ▁linked ▁to ▁the ▁purpose ▁of ▁the ▁main ▁cover ▁( e . g . ▁home ▁related ▁claims ▁such ▁as ▁disput es ▁with ▁neighb ours ▁or ▁car ▁related ▁disput es ▁in ▁case ▁of ▁a ▁motor ▁legal ▁protection ▁ins urance ). ▁When ▁legal ▁protection ▁ins urance ▁is ▁purchased ▁as ▁a ▁separate ▁and ▁independent ▁ins urance ▁product ▁( stand - alone ▁cover ) ▁the ▁range ▁of ▁services ▁provided , ▁the ▁extent ▁and ▁scope ▁of ▁the ▁cover ▁are ▁much ▁larger . ▁Sometimes ▁legal ▁protection ▁ins urance ▁is ▁offered ▁as ▁a ▁benefit ▁to ▁members ▁of ▁a ▁trade ▁union ▁or ▁association . ▁ ▁In ▁the ▁European ▁Union ▁precise ▁rules ▁govern ▁legal ▁protection ▁ins urance ▁and ▁explicitly ▁define ▁how ▁ins ur ers ▁must ▁organ ise ▁their ▁business ▁and ▁manage ▁claims . ▁These ▁rules ▁are ▁included ▁in ▁the ▁Sol ven cy ▁II ▁Direct ive ▁( Art icles ▁ 1 9 8 ▁- ▁ 2 0 5 ) ▁▁ ▁Leg al ▁protection ▁ins urance ▁should ▁not ▁be ▁confused ▁with ▁the ▁coverage ▁often ▁included ▁in ▁a ▁li ability ▁ins urance . ▁Li ability ▁coverage ▁is ▁designed ▁to ▁protect ▁the ▁policy holder ▁against ▁losses ▁resulting ▁from ▁acts ▁or