Do You Need Hull or P&I Insurance

Do You Need Hull or P&I Insurance

Arrowood Insurance - Do You Need Hull or P&I Insurance?

As a ship owner, charterer, or operator, you may be curious about how much insurance you need and where these policies should be directed. If you’re an insurance agent with clients who own or manage oceangoing vessels, you need a partner that can help you find the best P&I policy.

This need is compounded by the UN’s call for all oceangoing vessels to adapt to climate change in an effort to avoid incidents, accidents, and disasters.

If you’ve shopped for P&I coverage in the past, you know there is quite a lot of terminology buried within these policies, dictating how they provide your clients with coverage. As a result, your clients may require little assistance learning what they need. So, the question remains, do your clients need hull or P&I insurance, and how does it help them manage their vessels?

What Is P&I Insurance?

P&I insurance stands for protection and indemnity, helping vessel owners or charterers protect themselves and the vessel during (sometimes lengthy) voyages. Generally, your clients are expected to purchase insurance for oceangoing vessels, Arrowood Insurance Services through Mitsui Sumitomo offers this type of coverage, providing exemplary client care in every situation.


What Does P&I Insurance Cover?

Your clients are likely wondering what P&I will cover and need a simple list that explains precisely what these policies do.

Generally, P&I insurance covers:

  • Death, injury and illness of crew, passengers, and others
  • Cargo damage, shortage, or loss
  • Collisions
  • Damage incurred by docks, buoys, and other fixed or floating objects
  • Removal and salvage work
  • Pollution citations
  • Fines and penalties
  • Mutiny or misconduct by crew
  • Crew repatriation or substitution
  • Damage to property on the injured vessel
  • Quarantines
  • Vessel diversions and related expenses
  • Unrecoverable “general average” contributions
  • The vessel’s proportion of the “general average”

Because coverages are rather expansive, you should review the specific issues your clients have faced in the past. When working with our Arrowood team, we can help you understand how best to cover your clients and keep their costs down, especially when addressing particular types of losses.


Who Needs P&I Insurance?

P&I insurance should be purchased by vessel owners, charterers, or lessees. Any oceangoing vessel requires quite a bit of insurance just to push off from the harbor, and it’s important that your clients understand how much insurance they should carry before they intend to make their next voyage.

Additionally, P&I coverage can serve:

  • Marine construction firms
  • Owners or managers of piers, docks, seawalls, etc.
  • Wharf and terminal operators
  • Marine surveyors
  • Ship repairers
  • Marinas
  • Boat dealers


You can also review materials from Mitsui Sumitomo that include:

  • The commercial marine package application
  • A diving supplemental questionnaire
  • Hull PI application
  • LIG-Maritime employers’ liability app with diving and energy supplements
  • Marina and boat dealer application


Reach out to Aura for Assistance With P&I Insurance

When you want to review the coverages available from Mitsui Sumitomo, reach out to our team at Arrowood for more information.

We can review your client’s needs, provide a policy quote, and get your clients covered as quickly as possible.