The P&I insurance is one of the shipping industries fundamental insurances and covers the legal liability for damages that ship owners or operators can be exposed to in connection with operating the vessel.
The P&I insurance is a liability insurance that also serves supplementary to the liability covered under the hull & machinery policy, e.g. collision liability and general average.
The operation of a vessel is associated with several risks and situations that may induce legal liabilities towards a third party. The P&I insurance offer the ship-owner insurance cover for claims or damages occurring to a third person. With a P&I insurance the ship-owner protects his legal liabilities towards a third party.
The Alandia P&I facility is primarily targeted towards smaller tonnage in limited trade. The insurance is offered, as the H&M insurance, on a fixed premium basis and has a separately agreed deductible for each and every occurrence. The P&I complements the hull & machinery insurance and covers a wide range of liabilities that the ship-owner is exposed to when operating a vessel and can be viewed upon as a ticket to trade. The P&I insurance is agreed in coherence with the hull & machinery insurance to give the ship owner an essential and solid insurance solution. The Alandia P&I also offers the ship owner the possibility to complement the hull & machinery insurance and hence obtain a more comprehensive cover.
What does the insurance cover?
The P&I insurance does not cover the ship owner’s complete legal liability but is contracted to include specified agreed liabilities, thus making the insurance flexible and offers the ship owner the possibility to obtain the cover needed. The following liabilities may be imposed on the ship-owner and are good examples on what the insurance can include:
Liabilities in respect of persons
The ship-owners liability in respect of injury, illness, death, loss of or damage to personal property of the crew, passengers or other persons on board or in connection to the vessel.
Liabilities in respect of cargo
The ship-owner’s liability in respect of damage to or loss of cargo carried on board.
Liabilities, costs or expenses incurred as a result of the discharge or escape from the insured vessel of oil or any other substance or the threat of such discharge or escape.
Liability for other property
The ship-owner’s liability for loss of or damage to property not belonging to the policy holder.
The ship-owner’s liability as a result of a collision with another ship or other fixed or floating object that is not covered under the hull & machinery insurance. The P&I insurance complement the vessels hull & machinery insurance by including the liability exceeding the insured value under the hull & machinery policy.
The ship-owner’s liabilities, costs or expenses relating to the raising, removal, destruction, lightning or marking of the wreck of the insured ship, its cargo or equipment
For a more comprehensive description of our P&I insurance we refer you to our P&I insurance conditions found in our library.
Service and aid in assessing claims
Our P&I insurance offer, in addition to liability coverage, a possibility to receive counseling and guidance in connection with claims, casualties and in other situations where the ship-owner’s liability may be at risk. We can offer loss preventive measures and assistance e.g. through surveys and negotiations.