Court costs can be vast and ramp up quickly even for what might appear to be petty things, so if you want to keep a legal option on the table (and hope never to need it), then it's one of the things it's worth including because you probably can't afford it. But insurance is always a gamble, you're pitting your odds against the insurers. Or in my case, my wife, who will insure everything and anything*.
*we have a long-running argument about pet insurance, which is expensive and I doubt breaks even over the life of the pet, and ultimately we could afford a large vet bill, but I'm told this is an argument I won't win with mere logic.