Protection And Indemnity Insurance
What Does Protection And Indemnity Insurance Mean?
Protection and indemnity (P&I) insurance policies provide coverage for the owners and operators of water vessels against liabilities arising from their ownership and operation.
This coverage includes, but is not limited to:
- Loss or damage to property (such as goods on the vessel or shipping-related property like docks)
- Loss of life, sickness, or injury caused by conditions on the vessel
- Collisions and other incidents resulting in losses or damages
Insuranceopedia Explains Protection And Indemnity Insurance
Protection and indemnity (P&I) insurance covers various types of watercraft, such as ships, boats, tugs, and barges.
To obtain P&I insurance, the owner or operator must have the vessel inspected by the insurance company or its representative. This inspection records the watercraft’s condition, age, size, and claims history. The insurer also collects information about the vessel’s crew and staff.
P&I insurance can also be obtained through a non-profit club, where watercraft owners and operators pool their resources to cover risks. If a third party files a claim against a member, the pooled funds are used to cover a portion of the damages. Any amount exceeding this is the responsibility of the member liable for the damages.
