Funny you ask. I looked into this very thing when I became involved in this situation. There are pre-paid legal services like LegalShield, but most will only cover 20-25% of the cost. This represents a possible startup opportunity IMO.
That's a good point. This is where working with experienced actuaries to build risk models will be important. This idea would not be a tech startup per say. Just a good 'ol insurance policy with a shiny iOS app wrapper :)
1. The crime occurred in another city about 3 hours way, so poor granularity or precision really didn't come into play.
2. The crime itself was a hit and run on a road worker. Not something you'd generally believe to be premeditated where I'd have thought to have a friend haul my phone around town to provide an alibi.