Protection & Indemnity (P&I) Insurance is a specialized form of marine insurance that covers shipowners, operators, and charterers against third-party liabilities arising from the operation of a vessel. Unlike Hull & Machinery (H&M) insurance, which protects against physical damage to the ship itself, P&I insurance focuses on legal and financial responsibilities related to crew injuries, passenger claims, pollution incidents, cargo damage, and collisions involving third parties. It also covers legal defense costs, fines, and other expenses that may arise from maritime accidents or regulatory violations. P&I insurance is typically provided by P&I clubs, which are mutual insurance associations formed by shipowners to share risks collectively.

P&I insurance is essential for shipowners navigating the complexities of international maritime law and environmental regulations. With increasing scrutiny on issues such as pollution control, crew welfare, and cargo liabilities, this insurance helps ensure compliance while protecting against unexpected financial burdens. In the broader context of maritime risk management, P&I insurance works alongside Hull & Machinery (H&M) insurance to provide a comprehensive coverage framework, allowing shipowners to operate with confidence in a high-risk industry. This dual-layered approach is crucial in global shipping, where accidents or liabilities can result in significant legal and financial repercussions.