Who needs protection and indemnity insurance?


Protection and indemnity insurance is designed for the owners of ships or other sea-going vessels and the liability risks they face on a day-to-day basis. Protection and indemnity insurance is part of ocean marine insurance, along with the hull and machinery coverage, the cargo insurance coverage and the freight insurance coverage.

When to Buy Protection and Indemnity Insurance

If you are a ship owner or the owner of another kind of sea-going vessel, and operation of the vessels is done for business purposes, you do need some form of commercial liability insurance to protect you from third-party liability. Protection and indemnity insurance is specifically designed to cover the owners of craft transporting cargoes and goods for commercial purposes.

What Risk Exposures Protection and Indemnity Insurance Covers

Ship owners are exposed to a great many liability risks - from liability for the injury or death of a crew member or a passenger, to liability for causing property damage to fixed installations such as docks or piers. Protection and indemnity insurance provides the insured ship owner broad liability coverage in the event of any bodily injury or physical damage to others.

Here are a few examples of liability risks faced by owners of sea-going vessels, which are covered by protection and indemnity insurance:

  • Liability for physical property damage to fixed installations such as harbor, docks or piers, caused by the ship owned by the named insured;
  • Liability for property damage to the transported cargo or goods, resulting out of negligence;
  • Liability for physical damage to third-party property, which may be caused by collision;
  • Liability for damage to property owned by others, resulting from an incident other than collision;
  • Liability for the occupational bodily injury or death of a passenger or a member of the crew such as a sailor or a captain.
  • Liability for the bodily injury or death of harbor or long shore workers.
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