What does Protection and Indemnity Insurance mean? Read on to discover the definition & meaning of the term Protection and Indemnity Insurance - to help you better understand the language used in insurance policies.
Protection and Indemnity Insurance
Liability insurance for practically all maritime liability risks associated with the operation of a vessel, other than that covered under a workers compensation policy and under the collision clause in a hull policy. There is no standard P&I form with the specific terms and conditions for each insured tailored by underwriters based on the nature of the risk and the character and amount of insurance desired by the insured. Additionally note that since the P&I policy is essentially a contract of indemnity, the insurer is not obligated to pay unless the insured must actually pay the claim.
We hope the you have a better understanding of the meaning of Protection and Indemnity Insurance.