Lost Luggage Insurance is a type of travel insurance that covers the cost of replacing or reimbursing passengers for lost, damaged, or delayed baggage while they are travelling. This insurance typically provides coverage for a specified amount per bag and may have limits on the value of items that can be claimed. It can provide peace of mind to travelers knowing that if their luggage is misplaced by an airline or other transportation provider, they will be reimbursed for any losses incurred.