P&I Insurance

Protection & Indemnity (P&I) insurance is a specialized marine liability coverage that fills gaps left by standard hull and general liability policies. It typically covers crew injury and illness, passenger injury, pollution liability, wreck removal, collision liability in excess of hull coverage, and certain contractual liabilities related to charter parties.

P&I policies are the backbone of commercial marine liability and are typically written by specialty marine insurers or mutual clubs. For charter vessels, a P&I layer is functionally equivalent to the general liability + passenger legal liability + pollution coverage combination offered in packaged pleasure policies — but with marine-specific exclusions and endorsements.

P&I limits are usually expressed separately from hull value; a $500,000 hull yacht might carry $1M-$10M in P&I depending on passenger load and operating area.