P&I

Protection and Indemnity (P&I) Insurance covers third-party liabilities of shipowners — risks that hull and machinery insurance does not. P&I typically covers: cargo loss/damage, personal injury and death to crew or passengers, third-party property damage, oil pollution liability, wreck removal, fines, and legal defence costs.

Most large shipowners insure their P&I risks through mutual associations called P&I Clubs, the largest of which form the International Group of P&I Clubs covering ~90% of the world's ocean tonnage. The 13 International Group clubs pool risks above a retained level — so a $1bn pollution claim against any member is shared across all clubs.

P&I cover is non-negotiable for trading internationally. Every port call requires evidence of valid P&I cover, typically via a Certificate of Entry issued by the club.