A system for providing insurance associated with a lost-and-found service, according to which a person and/or item (the “insured”) is covered by an insurance policy that provides compensation in the event of at least one of loss, theft, damage, and/or destruction of an item, and in association with said insurance, also receives one or more services that facilitate the return of the item if it is lost or stolen. The insurance policy pays for the facilitation of the return of an item if it is lost by the insured and subsequently found and reported to a lost-and-found service provider. The insured pays the insurance provider a deductible for the return of the previously insured and/or lost item. Also, a lost-and-found service provider is reimbursed by the insurance provider when an item is lost in exchange for providing the services of identifying the insured using unique markings contained on a lost item owned by the insured, contacting the person associated with the item, contacting the insurance service provider (which may or may not be the same as the lost-and-found service provider), and/or facilitating the return of the lost item to the owner or insurance provider. Registering for an insurance policy also facilitates registering for the services of a lost-and-found service provider.