In Ocean Marine Insurance, what is Protection and Indemnity?

Protection and Indemnity (P&I) insurance is a specific type of liability insurance designed to cover the legal liabilities of shipowners and operators. It provides protection against various risks associated with the ownership and operation of vessels, including costs stemming from bodily injury to crew members, passengers, and third parties, as well as damage to cargo or property. This coverage often extends to liabilities arising while the vessel is in operation, during loading and unloading processes, and various other maritime activities.

The nature of P&I insurance makes it distinct from property insurance, which typically covers loss or damage to physical assets, and personal accident insurance, which addresses injuries to individuals. Instead of focussing solely on property damage or personal injury, P&I insurance encompasses a broader spectrum of liability issues specifically related to maritime operations, making it essential for those involved in ocean marine ventures.