Protection and Indemnity (P&I) is a type of insurance that shipowners purchase to cover the potentially huge costs of any harm they accidentally cause to people, property and the environment.
As liabilities for injuries, cargo loss, collisions, property damage, pollution, environmental damage and removal of wrecks can far exceed the value of a ship, shipowners have found since the 19th century that the most cost-effective way of buying P&I cover is through not-for-profit clubs of like-minded shipowners.
All shipowners who use their vessel for business or transportation, or for transporting passengers, workers, or cargo across international seas, must carry P&I insurance. To enter ports around the world, the master must provide a ‘certificate of entry’ given by the shipowners’ respective P&I club, demonstrating their insurance to the port authorities.
