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.
P&I covers the liabilities that hull insurance does not — cargo claims, crew injury, pollution, wreck removal. It is mutual (via P&I Clubs) and non-negotiable: every port call requires evidence of valid cover, because the potential third-party exposure — a major oil spill runs to billions — is more than any single owner could bear.
hull · machinery
cargo · crew · pollution
What is a P&I Club?
A mutual insurance association of shipowners that pools third-party liability risks. The largest form the International Group, which shares very large claims across all member clubs.
What does P&I cover that H&M does not?
Third-party liabilities — cargo loss or damage, crew and passenger injury, pollution, wreck removal, fines and legal costs — whereas H&M covers physical damage to the vessel itself.