Bright Grey has called for consumers to ensure they have adequate protection as research revealed more than 11 million Britons have lent a family member or friend money unexpectedly.
The insurer's annual Financial Safety Net report found almost a quarter (23%) had no safety net should they lose their main source of income.
The research said one in ten (11%) people had lent money to a friend or family member the past twelve months.
The average amount people have loaned to family and friends in the past is £1,091, with the research also revealing that these types of requests for money are the most costly expense people have experienced.
While many people are providing financial support for family and friends, there are also a significant number (10%) who have also had to borrow money themselves.
In addition, one in five people (19%) admitted they currently have no savings set aside should the worst happen.
People are far more likely to borrow more from an older family member (55+), with this group lending an average £900 more compared with those aged 18-34 in the last 12 months (£1,447 compared to £505).
However, nearly one in 10 people (9%) aged over-55 revealed that they currently have no money set aside should an unexpected expense arise.
Jennifer Gilchrist, senior product development manager at Bright Grey said: "The main problem with unexpected expenses is exactly that - they are unexpected. As this research shows, many people have been called upon to provide financial assistance for their loved ones, yet one in ten (10%) has had to call upon the same form of support themselves.
"While we all want to do the best we can for our family and friends, it is important that people make sure their own finances are in order before making a personal loan of this kind."
Gilchrist said for it was important for consumers to have adequate protection or a financial buffer to help them prepare for any unforeseen expenses.
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