Which type of insurance provides protection with indemnity coverage?

Marine insurance is specifically designed to provide indemnity coverage, meaning it compensates the insured for loss or damage to their property, typically vessels and cargo, due to various risks such as sinking, collision, or theft. The principle of indemnity in marine insurance ensures that the insured is restored to the financial position they were in immediately before the loss, rather than gaining profit from their insurance claim.

In contrast, agricultural insurance primarily focuses on coverage related to crop loss or damage, and while it may include some indemnity features, it is often more about risk management for specific agricultural perils. Life insurance operates differently, as it pays out a specified benefit upon the death of the insured, which does not align with the indemnity concept. Health insurance, while also providing benefits for medical expenses, functions on a reimbursement basis rather than indemnifying for physical property loss. Therefore, marine insurance stands out in this context as the clear option that emphasizes indemnity coverage.