Maritime trade operates in one
Maritime trade operates in one of the most risk-intensive environments in the world. From unpredictable weather and mechanical failures to cargo damage, pollution incidents, and geopolitical tensions, the financial exposure faced by shipowners and cargo interests is substantial. Maritime insurance exists to manage these risks, providing structured financial protection that enables global shipping to function with confidence.
Outlined below are the principal types of maritime insurance commonly encountered in practice, explained in a structured and accessible manner.
1. Protection and Indemnity (P&I) Insurance
Protection and Indemnity insurance is designed to cover a shipowner’s third-party liabilities arising from the operation of a vessel. Unlike conventional commercial insurance, P&I is typically provided by mutual associations known as P&I Clubs.
This form of insurance addresses liabilities that fall outside physical damage, such as crew injury or death, passenger claims, cargo liability where the carrier is legally responsible, pollution damage, wreck removal, and collision liabilities.
Content Original Link:
" target="_blank">
