Glossary
Protection & Indemnity (P&I)
Definition: Protection & Indemnity (P&I) is membership-based maritime insurance covering the vessel owner's / operator's liability to third parties. It's run through P&I Clubs — mutual insurance bodies.
Why it matters
H&M alone isn't enough for yacht financing. P&I addresses the financing partner's "third-party risk" requirement. In practice H&M + P&I is the standard pair.
Typical coverage
- Third-party liability — damage to another vessel / property
- Crew — injury, illness, death compensation, repatriation
- Pollution — fuel spill, cargo spill
- Passenger / charter guest — injury, property damage
- Marina / port — jetty damage, waste fees
P&I Club membership
A P&I insurer isn't a traditional insurance company; it's a mutual club formed by shipowners. Recognised clubs:
- UK Club
- Skuld
- Gard
- North
- Steamship Mutual
Financing partners accept membership in one of these.