Shipowners P&I – Essential Protection for Your Fleet
Why Do Shipowners Need P&I Insurance?
Amana Marine provides comprehensive Protection and Indemnity (P&I) insurance for shipowners. Our P&I coverage protects against a wide range of legal liabilities encountered during the operation of vessels. These risks include cargo damage, collision and jetty damage, crew injury, and oil pollution—examples that continue to grow with evolving regulations from the International Maritime Organization (IMO).
The need for P&I insurance is more crucial than ever, as it enables shipowners to navigate the complex maritime environment while ensuring compliance with international laws. It is now essential for facilitating global trade and protecting shipowners from high-profile and emerging risks.
The key risks covered by Amana Marine’s Shipowners P&I insurance are summarized below. Full details can be found in our Entry Rules, Class I, rule 1 .
Amana Marine P&I is designed to cover our shipowner Member’s exposure to legal liabilities that may arise from contracts, negligence (tort), or violations of maritime or other laws. In addition to covering the direct cost of these liabilities, Amana Marine P&I also provides comprehensive and proactive liability defense. This includes survey, claims adjustment, legal advice, and settlement on the best terms for the Member.
Traditionally, H&M insurance covers the repair of damage to the "own ship" and ¾ of the liability for the damage and consequential losses to the other vessel (up to the insured value of the "own ship"). Customarily, P&I covers the remaining ¼ plus any excess balance. To simplify the complexities of this split liability insurance and enhance coverage, Amana Marine offers its Members the option to benefit from full 4/4 collision liability under their P&I entry.
CONTACT WITH FIXED AND FLOATING OBJECTS (FFO) FFO
covers damage caused by contacts with jetties, fendering, shore cranes, navigational buoys, and other third-party property. It also protects against claims for consequential economic losses due to jetty damage, closure, and repair downtime. Amana Marine’s assistance includes the attendance of specialist civil engineers to assess the underlying cause and reasonable cost of repairs.
Damage and loss to cargo are generally covered by the shipper’s or consignee’s cargo insurance policy. In turn, the cargo insurer may bring a subrogated and often aggressive recovery claim against the shipowner. Regardless of whether the claim is brought by cargo insurers or directly by cargo interests, Amana Marine Shipowners P&I steps in immediately to survey, defend against cargo insurers or other interests, and, if necessary, negotiate a settlement on the best terms for the Member.
INJURY OR DEATH OF CREW, PASSENGERS, STEVEDORES, PILOTS, ETC.
Ships can be hazardous, especially during cargo operations. Claims for injury or accidental death to crew, passengers, and other persons on board comprise one of the largest elements of P&I liability exposure. Amana Marine P&I provides coverage for all of these risks, whether they arise under crew employment contracts or from alleged shipboard negligence.
Shipowners and their crews may face criminal charges and fines for breaching statutory regulations, including accidental oil spills, crew smuggling, and serious infractions like unlawful immersion of load line marks. Amana Marine P&I will cover all such fines as well as the expenses of associated inquiries and defense costs.
CREW WELFARE AND MARITIME LABOUR CONVENTION (MLC) LIABILITIES
The MLC now stipulates the framework for crew employment contracts and their enforcement. This includes covering medical care costs and repatriation in the event of workplace injury or illness. Compensation for lost wages, pain, and suffering is also included. Substitute seafarers must be engaged immediately to meet flag state minimum manning obligations. A written undertaking from approved P&I insurers must be available to guarantee the payment of crew wages and repatriation if the shipowner ceases trading. Amana Marine P&I covers all of these crew risks, costs, and MLC insurance obligations.
Ship-source pollution liability is based primarily on three IMO conventions: MARPOL, the Civil Liability Convention (CLC), and the Bunker Convention. Breaching MARPOL regulations can incur heavy fines and even imprisonment. Cargo oil spills (regulated by the CLC) and bunker fuel spills (regulated by the Bunker Convention) place shipowners under a strict liability regime, resulting in claims for both cleanup costs and consequential economic losses. Amana Marine P&I provides coverage for all of these regulatory exposures.
Shipowners’ liability for wreck removal is governed by the IMO’s Nairobi Convention. If a wreck poses a navigational or environmental hazard, port authorities can issue a formal order against the owners. The legal exposure is one of strict liability, and limitation of liability is typically not available. Once H&M underwriters agree to an ‘in principle’ payment of a Constructive Total Loss (CTL), Amana Marine P&I will engage to cover wreck removal expenses.
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COVERAGE?
COVERED RISKS
In compliance with the Maritime Labour Convention (MLC), all ships engaged in international trade and over 500 GT must carry two separate MLC Certificates. These certificates demonstrate compliance with repatriation and wage payments for abandoned seafarers, and compensation for death and long-term disability.
Amana Marine promptly issues MLC Certificates in PDF format, accepted globally for port entry.
MLC CERTIFICATES
Under the Civil Liability Convention (CLC), Bunker Convention, and Wreck Convention, ships must carry Flag State Trading certificates confirming liability insurance by an approved insurer.
Amana Marine provides globally recognized Blue Cards, ensuring smooth processing of your ship’s entry into port.
BLUE CARDS
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