Protection & Indemnity (P&I) insurance is a type of marine liability insurance that provides coverage for ship-owners, operators, and charterers for liabilities and risks associated with operating vessels at sea. P&I insurance typically covers a wide range of liabilities, including but not limited to bodily injury, property damage, pollution, collision, and cargo damage. This type of insurance is essential for maritime businesses to protect themselves against potential financial losses and legal liabilities that may arise from their operations.
P&I insurance is often provided by mutual insurance associations known as P&I clubs, which are owned and operated by their members. These clubs pool resources and share risks among their members to provide comprehensive coverage and support in the event of a claim. P&I insurance is a critical component of risk management for maritime businesses, helping them navigate the complex and high-risk environment of the shipping industry.
Protection & Indemnity (P&I) insurance typically covers a wide range of risks associated with the operation of ships and vessels. Some of the risks that P&I insurance may cover include:
- Third-party liabilities: P&I insurance can provide coverage for liabilities arising from bodily injury or death of crew members, passengers, or third parties, as well as damage to property caused by the insured vessel.
- Pollution liability: P&I insurance may cover liabilities related to pollution caused by the insured vessel, including oil spills and other environmental damage.
- Collision liability: P&I insurance can provide coverage for liabilities resulting from collisions with other vessels or objects, including damage to property and personal injury.
- Wreck removal: P&I insurance may cover the costs associated with removing wrecks or debris from the waterways to prevent hazards to navigation.
- Cargo liabilities: P&I insurance can provide coverage for liabilities related to damage or loss of cargo carried on the insured vessel.
It is important to review the specific terms and conditions of a P&I insurance policy to understand the extent of coverage provided for these and other risks.