Head & Amory v. The Providence Insurance Company was a case heard by the United States Supreme Court in 1804. At issue was whether or not an insurance company could be held liable for damages to goods that were lost at sea due to negligence of the ship's captain and crew. Head & Amory had purchased marine insurance from The Providence Insurance Company, but their shipment of goods never arrived as it had been lost at sea during transit. Head & Amory sued for breach of contract, arguing that they should receive compensation from the insurer since it was ultimately responsible for any losses incurred due to its negligence in selecting a competent captain and crew members who would ensure safe passage of their cargo across the ocean. In its ruling, the court found that insurers are indeed liable when there is evidence showing negligent selection on behalf of those charged with transporting insured property over water; however, if no such evidence exists then insurers cannot be held accountable for any losses sustained while crossing seas or oceans under normal circumstances.

In Head & Amory v. The Providence Insurance Company, the Supreme Court of the United States was asked to decide whether a policyholder could recover damages from an insurance company for failing to pay out on a claim. The majority opinion held that no such recovery was possible because there had been no breach of contract by the insurer and therefore no cause of action existed. However, Justice Samuel Chase dissented from this ruling and argued that it would be unjust if insurers were allowed to escape liability simply because they did not explicitly break their contracts with policyholders. He further noted that allowing insurers to do so would create an incentive for them to avoid paying claims in order to maximize profits at the expense of those who have paid premiums faithfully over time. In conclusion, he believed that policyholders should be able to seek compensation when their claims are wrongfully denied or delayed without good reason by insurance companies.