Protection and Indemnity (P&I) covers liabilities incurred in direct connection with the operation of the ship.

Unlike loss insurance, P&I responds to liability for damage or loss which the assured has caused to others.

P&I insurance helps to protect people, the environment and property from third party risk.

This insurance, originally intended for shipowners only, emerged during the second half of the 19th century. It was determined that a shipowner, who had caused damage to another vessel in a collision, could not fully recover his liability for damage to the other vessel under his own hull policy.

The main advantage with the cooperation through the International Group of P&I Clubs (IG) is the claims sharing and the reinsurance agreements, unparalleled, both in terms of capacity and limits. IG provides marine liability cover for 90% of the world's ocean-going tonnage. The 12 IG member Clubs are individually competitive, but share knowledge and expertise on matters relating to shipowners liabilities and the insurance and reinsurance of such liabilities.