Protection and Indemnity (P & I)
P&I insurance (Protection and Indemnity) is the shipowner’s or ship operator’s liability insurance against third parties which may arise in the course of the operation of the ship. In general terms, it refers to the shipowner’s liability for damage to the cargo carried, as well as for possible injury to crew and passengers, liability for pollution of the marine environment, liability for illegal passengers, etc. It also covers the shipowner’s liability for damage caused to the cargo. The conditions of insurance and the scope of cover may vary according to the type of ship and the purposes for which it is used.
P&I insurance, as one of the main types of marine insurance, is required by cargo owners as well as by various national and international organisations, as it is practically impossible to operate a vessel without valid P&I insurance cover.