Protection & Indemnity (P&I)

Protection & Indemnity (Re)Insurance is intended to (re)insure shipowner’s or ship manager’s third party liability that may arise from vessel operation. Generally, this cover works in cases, when Shipowner is liable for damages caused to cargo, possible injuries of crew members and passengers, pollution, etc. Policy conditions and premium will vary depending on the type of vessel and use.

The main risks covered are liabilities, expenses and costs for:

  • Loss of life, injury and illness of crew, passengers and other persons
  • Cargo loss, shortage or damage
  • Collision
  • Damage to docks, buoys and other fixed and floating objects
  • Wreck removal
  • Pollution
  • Fines and penalties

Running Down Clause (RDC) and fixed or floating objects (FFO)

When such additional cover as Running Down Clause (R.D.C.) is included into cover, it helps Shipowner in case of their liability for collision with other vessel. The (re)insurer will also indemnify for the losses of other Third Parties involved in an accident: passengers, cargo owners.

Fixed and Floating Objects (FFO) protects Shipowner if they are liable for damages to berth, quay, buoy, any other floating structure.

These two risks may be included in either P&I or H&M policy, or divided between the two covers (for example in proportion ¼ & ¾).

Death and Personal Injury on board the vessel

P&I (re)insurance covers an owner’s liability for all deaths, personal injuries and illnesses which occur on board, including death or injury to crew, passengers, stevedores, pilots and visitors to the ship.

Repatriation of Sick or injured crew and hospital expenses

P&I insurance also covers a shipowner’s liability to pay for the costs of repatriating crew members who become sick or are injured on board. The (re)insurance also covers the crew’s hospital bills and costs of sending replacement personnel to the ship if necessary.

Loss of or Damage to Cargo

One of the major functions of Protection and Indemnity insurance is to cover a shipowner, or the charterer of a ship, for liability for loss, damage, shortage and delay to cargo if there has been a breach of the contract of carriage. This breach of contract usually means that something has happened to the cargo while it was on board the ship or being loaded or discharged and for which the owner or charterer can be held responsible, typically shortage or damage to the cargo.

Charterers’ P&I (Protection & Indemnity) is designed to protect Charterers against claims from third parties and Shipowners.  Standard cover includes liability for damage to cargo and property of a third party, pollution etc.

Important part of the cover is protection of Charterers against damage to vessel’s hull. This liability may arise, for example, in the course of loading / unloading operations conducted by stevedores.

Please contact us for discussions regarding the parameters of cover needed