Liability Insurance

What You Need to Know About P&I Liability Insurance

‘P&I’ stands for protection and indemnity. The P&I liability insurance is specifically intended to discourse the unique necessities of the marine industry. It caters practically to all maritime liability threats linked to the ownership and operation of a commercial vessel. These include third-party threats for harm and destruction caused to cargo during shipment, risks of environmental mutilation such as oil leak and pollution, war, and political dangers. Luckily, getting fixed P&I liability insurance is absolutely convenient.


During the 19th century in London, UK, ship owners and those that charter on the boat had been opting for assurance for their vessels. Later on, they started appreciating the significance of seeking third-party indemnity protection for cargo liabilities. They believe that they could be found at fault when the shipment gets lost or destroyed while on the ocean.

Conversely, the early periods of the 19th century have made it difficult for ship owners and charterers to obtain third party shipment liability risk assurance. Most underwriters during those times were unwilling to be responsible for the accountabilities. That said, ship owners and charterers put their efforts together to establish mutual P&I clubs.

Liability Insurance

More About P&I Insurance

The original P&I clubs started in London, UK, and the concept reached other major shipping dominions across the globe. A remarkable and the first protection association that early ship owners and charterers formed was later called the Britannia P&I Club. So far, you can also find successful clubs in Japan, China, Bermuda, Norway, Sweden, United Arab Emirates, Singapore, South Korea, and the USA.

The goal of the club is to cover accountabilities for loss of life, personal injury, and collision threats. It caters assistance not covered by marine assurance policies. Since then, the success of the club was recognized by many, and similar associations have emerged.

International Association

To strengthen the objectives and efforts of various P&I clubs, they join the International Group of P&I Clubs. Though each club remains self-governing, each member can share the following:

  • Their significant loss revelations and their respective understanding
  • Knowledge on marine accountabilities

Through an international association, each member has access to the forum for pulling together and exchanging opinions. The clubs can pool their assets together to give excellent insurance limits and re-assurance coverage at a considerable cost.

What to Expect From P&I Insurance

Primarily, Protection and Indemnity assurance aims to render protection against illness, personal injury, and mortality claims from the crew, passengers, etc. Here’s the breakdown of the coverage for you to better understand them:

  • Liability assertions as a result of impact or vessel crash
  • Removal of ruins
  • Runaways and deportation
  • Damages to or loss of shipment
  • Harms to fixed or floating objects
  • Civil accountabilities enacted after pollution or oil leak
  • Liability under approved ‘towage’ agreements

The Protection and Indemnity Assistance plan is different. It doesn’t cover threats that would fall under a workers’ compensation policy.

If you’re a manager or executive from a shipping company, a shipmaster, an officer, a P&I broker, a P&I correspondent, a marine surveyor, or a consultant, you need ample protection. Get it from a reliable provider to gain peace of mind.

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