Protection & Indemnity
Protection & Indemnity insurance is amongst the oldest and most important marine insurance products and covers liability claims, such as cargo claims, personal injury claims, oil pollution claims, wreck removal claims, excess collision liability and the costs for repatriation of stowaways.
The scope of P&I cover has constantly enlarged over the past two centuries, hand in hand with the development of shipping. A recent example is the cover for liabilities in connection with MLC Rule 2.5.2 (financial security for the claims of seafarers against the shipowners), which is not a classic P&I risk.
P&I insurances issue their confirmation of cover required in accordance with certain conventions related to maritime safety, pollution, wreck removal and personal injury. With these co-called Blue Cards the shipowners may apply for flag-state approval.
The lion’s share of the world merchant fleet is covered by P&I Clubs, who operate on a mutual basis. In addition, there are numerous commercial P&I insurance providers who cover the risk against fixed premiums.