Protection and indemnity insurance (P & I Insurance)
Protection and Indemnity Insurance is mutual insurance which covers shipowners' liability to third parties for damage to their ship or cargo, as well as statutory liabilities such as pollution and wreck removal, it but does not cover direct losses to the shipowner's own ship or cargo.
Four classes of coverage are included in P&I:
1. Protection, which covers a shipowner for claims paid in regard to liability for loss of life, personal injury, damage to fixed or floating objects, wreck removal and one-fault collision in liability;
2. Indemnity, which reimburses the shipowner for indemnity given to owners of damaged or lost cargo;
4. Freight War Risks.