P&I – Protection and Indemnity – covers liability incurred by shipowners with regard to third parties while operating their vessels. Shipowners Protection and Indemnity (P&I) insurance covers a number of risks of legal liabilities that shipowners are exposed to in process of their vessels operation. These liability risks relate to cargo damage, collision, crew injury and pollution risk.

This list of exposures becomes wider as the IMO continues to introduce further regulations, inclusive of mandatory obligations to produce evidence of insurance cover to entitle port entry. Shipowners P&I became essential for the international trade and protection of shipowners from widening marin risk environment.

P&I is a type of insurance that shipowners buy to protect themselves of huge costs and any harm they accidentally cause to third party’s life, health, property and the environment. As liabilities for injuries, cargo damge, collisions and pollution may be much more higher than the value of a vessel, since the 19th century shipowners have found that the most cost-effective way is to buy the P&I policy.