What does an indemnity agreement primarily serve to do?

An indemnity agreement primarily serves to compensate for a loss. This type of agreement is a legal contract where one party agrees to compensate another for a specific loss or damage that may occur under certain circumstances. The essence of indemnity is to restore the party who suffered the loss to the financial position they occupied before the loss occurred.

Indemnity agreements are commonly used in various contexts, such as insurance contracts, where the insurer agrees to cover potential losses that may be incurred by the insured. The focus is on mitigating financial risk and ensuring that individuals or businesses do not suffer undue financial hardship due to unexpected events.

This is distinct from the other options. While saving for retirement, offering tax benefits, or covering future expenses are important financial strategies and considerations, they do not capture the specific purpose of an indemnity agreement. The primary function of indemnity is focused on addressing losses and providing compensation, making option B the correct choice.