Protection and Indemnity Insurance (P&I)
Definition - What does Protection and Indemnity Insurance (P&I) mean?
Protection and indemnity (P&I) insurance policies cover the owners and operators of water vehicles from liabilities arising from their ownership and operation of these vehicles.
This protection includes, but might not be limited to:
- Loss or damage to property (such as goods within the vehicle or property pertinent to shipping, such as docks)
- Loss of human life, sickness, or accident brought by conditions on the vehicle
- Collision and other untoward incidents that bring about losses or damages
Insuranceopedia explains Protection and Indemnity Insurance (P&I)
Protection and indemnity insurance covers different kinds of watercraft, such as ships, boats, tugs, and barges.
To acquire P&I insurance, the owner or operator of the watercraft must have it inspected by the insurance company or one of its representatives to record its condition, age, size, and claims history. The insurer will also collect the names of the craft's crew and staff.
P&I insurance can also be acquired through a non-profit club. These clubs are composed of watercraft owners and operators who pool their money to cover risks. If a third party issues a claim against one of the members, the available cash is used to pay for a certain portion of the damages. Any amount in excess of this is covered by the member of the club who is liable for the damages.
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