Protection and indemnity insurance is specifically designed to address the unique needs of the maritime industry. It is basically a marine third-party liability insurance associated with the ownership and operation of a vessel covering risks against personal injury, illness and death claims from crew and passengers, damages to fixed and floating objects, removal of wreck, oil pollution liability and much more. It does not cover risks that would fall under a workers’ compensation policy or under the collision clause in a traditional hull policy.
There is no standard underwriting form when it comes to P&I insurance. Rather, underwriters will tailor bespoke P&I coverage for each insured, based on the nature and character of the risk, and the amount of insurance desired.