What type of contract protects a policyholder from financial losses and follows the person rather than the property?

The correct answer is insurance, as it is specifically designed to protect individuals from financial losses due to unexpected events, such as accidents, theft, or natural disasters. Unlike contracts that are tied to specific properties, insurance contracts, particularly personal insurance policies like liability or health insurance, follow the individual (the policyholder). This means that they can receive coverage regardless of the location of the loss or damage, so long as it falls under the terms of their policy.

For instance, if a policyholder has a homeowner's insurance policy and then goes to a friend's house and accidentally causes damage, their liability coverage may still apply, providing financial protection. In situations of financial loss, the insurance policy acts as a safety net for the individual rather than just the property itself.

Other types of contracts such as lease agreements, bond contracts, and mortgage agreements typically focus on property-specific actions or responsibilities rather than providing personal liability and risk coverage.