Most of us, in our personal lives, try to minimise possible ﬁnancial losses by taking out hefty insurance policies. In fact, it is hard to purchase much these days, particularly in the electrical goods market, and get away without purchasing some sort of extended warranty. These are usually straightforward decisions based on simple likelihood: if the iron packs up, is it worth paying £20 p.a. insurance when irons rarely do pack up and only cost about that to replace in any event? If we are uninsured and have a car accident however – which, over a lifetime, is quite likely – we may lose our home to pay the costs of the other party, if the accident is our fault.