Commonly referred to as P&I, Protection and Indemnity insurance can best be compared to commercial auto insurance, but for a boat. P&I generally includes coverage for:
- Liability,
- Hull / Motors / Equipment, and
- Crew
Liability
Liability coverage under a P&I policy protects your business for liability resulting from operating your vessel. We often hear business owners express they do not need P&I because their boats are not expensive. That may be true, but the damage and bodily injury a boat can cause can be significant.
Collision
The most common claims result from collision with another vessel. These collisions are more common than most realize. Many of our clients make their living on the water and are highly experienced. However, in the event of a collision that is the error of another party, fault can be difficult to prove. Even the most careful boater can have an accident. P&I protects your business in this event.
It also protects your business for collisions with a fixed or movable object other than a boat. Think of all the hazards on the water including buoys, docks, and moored vessels. Imagine your employee forgets right-of-way rules and punctures a gash in a $200,000 sailboat. Accidents happen. You get the idea.
Bodily Injury
Other boats and docks are relatively easy to repair when compared to people. We don’t heal so easily. Thus, P&I includes coverage for liability for injury to other people. The most common example is injury the result of a boat collision, but don’t forget about the risk of running over swimmers, divers. If your business includes paid passengers such as eco-tours or ferrying operations, liability protection can extend to covering these parties as well.
Defense
Lastly, P&I includes defense and investigation costs. In any of the above scenarios, it is quite possible your business will need specialized legal counsel. P&I extends to provide these expenses.
P&I insurance includes limitations as well as several coverages not listed here. Read your policy and ask your insurance agent to review it with you. Questions regarding commercial boat insurance? Contact us. Not a client of ours? Let us earn your business! Each client is assigned a personal agent in our office, given their email address, and provided a phone number that rings right on their desk.
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