Protection & Indemnity Insurance

Operating a vessel at sea involves many risks, from cargo damage and accidents to natural disasters, all of which can lead to significant financial losses. Managing these risks is essential to protect vessel owners and operators from unexpected liabilities.

While standard maritime insurance covers some risks, it may not provide protection for all the challenges that come with owning and operating a vessel. Protection and Indemnity Insurance offers more comprehensive coverage, helping to safeguard against these additional risks.

What is Protection and Indemnity Insurance?

Protection and Indemnity Insurance (commonly called P&I, or P&I membership) provides cover for third-party liabilities associated with the operation of a vessel such as cargo loss, personal injury to third parties, pollution and collisions.

Every major Australian port mandates commercial vessel owners and operators to maintain some form of Protection and Indemnity insurance to operate within the Port confines. All shipowners utilising their vessels for business, transportation, or passenger, worker, or cargo transport will also need to hold this type of insurance to cross international waters.

P&I Insurance is essential for shipowners, charterers, and operators, marine contractors, port authorities, and other maritime entities may protection against liabilities arising from their activities in the maritime industry.

A Protection and Indemnity Insurance policy typically covers:

• Injury to Crew where not covered by Workers Compensation or Seafarers Liability
• Deviation expenses
• Legal Assistance and Defence Costs as standard a form of cover commonly not included, but considered to be a necessity for Commercial operators.

Where necessary, Coverforce can also negotiate 'Specialist Operations Coverage' for those vessel operators involved in works such as navigational marker maintenance, seabed/seafloor works and subea pipe laying.

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