A comprehensive P&I insurance covering all of an owner's legal and bodily liability from ship operation — crew casualty, oil pollution, cargo damage, collision liability, passenger injury, wreck removal and salvage. It supplements the area hull insurance does not cover.
N2N Insurance Brokerage does not represent any single insurer — it independently represents the client as an FSS-registered broker (Reg. No. 2026-012201). We compare the wordings, rates and service of AIG · Chubb · DB · Hyundai · KB · Meritz to propose the cover and price best suited to your risk. Each insurer's full wording is provided at application and binding.
A comprehensive P&I insurance covering all of an owner's legal and bodily liability from ship operation — crew casualty, oil pollution, cargo damage, collision liability, passenger injury, wreck removal and salvage. It supplements the area hull insurance does not cover.
Container, passenger ships, ferries.
Ocean-going and coastal fishing vessels.
Barges, tugs, work vessels.
Coastal and fishing boats.
| Policy period | 1 year (P&I year: 20 Feb basis) |
|---|---|
| Insurers | AIG · Chubb · DB · KB · Meritz · Hyundai (compared) / P&I Club link |
| Limit | By tonnage and liability area |
| Turnaround | 2–4 weeks |
| Channel | Individual consultation with our broker (010-5755-6465) |
If the insured event has already occurred at the time the contract is made, the contract is void. However, where the contract is void due to the company's intent or negligence, or where the company knew or could have known of the nullity before acceptance yet did not refund the premium, the company refunds the premium with interest at the policy-loan rate published by the Korea Insurance Development Institute, compounded annually, for the period from the day after payment to the day of refund.
The specific losses not covered (exclusions) are set out in each insurer's policy wording and product description; on this page, see the “Cover” tab(or the “Losses not covered” section) for the main exclusions. For other cover-specific grounds on which claims are not paid, please refer to the policy wording.
The company provides cover, in accordance with the policy, from the time it accepts the application and receives the first premium. Where the company accepts the application after receiving the first premium with it, cover also begins from the time the first premium was received.
The application must be completed by the policyholder, and the policyholder and the insured must sign it by hand. Failure to sign by hand may result in disadvantages regarding the validity of the contract. On an internet cyber-mall, an electronic signature may be used instead.
The policyholder has the right to be given and have explained the information needed about the product they wish to buy.
The insurer and N2N Insurance Brokerage must explain the important matters of the product to ordinary financial consumers.
When applying, the policyholder, the insured or their agent must disclose truthfully the facts they know regarding the questions in the application (including the questionnaire). Otherwise the claim may be declined or the contract cancelled. Where insurance is taken out by telephone or other means of communication, the duty is performed by answering the seller's questions, which are recorded, without a separate written questionnaire, so answers must be given with particular care.
If, after the contract is made, any of the following arises in respect of the subject-matter insured, the policyholder or the insured must notify the company in writing without delay and obtain endorsement on the policy.
The surrender value is the amount paid if the contract is cancelled early. Unlike bank savings, insurance combines risk protection and savings: part of the premium is paid out as claims to other policyholders who suffer accidents, and part covers the insurer's operating expenses, so the surrender value on early cancellation may be less than the premiums paid, or nil.
Under Article 59-4(1) of the Income Tax Act (special tax credit), for protection-type insurance taken out by an employee only, a tax credit of 12% of the premium paid (capped at KRW 1 million per year) is available. Tax matters may change with amendment or repeal of the relevant tax law.
Except as provided by law, the insurer and N2N Insurance Brokerage do not collect, use, inspect or provide personal data related to this contract — for its conclusion, maintenance and claim payment — without the consent of the policyholder, the insured or the beneficiary. However, for those purposes the insurer may, with the consent of the policyholder and the insured and in accordance with law, provide personal data to other insurers and insurance-related bodies.
The above is a summary and excerpt of the policy wording; for grounds on which claims are not paid and other details, please refer to the policy wording and product description.
Risk patterns that come up often in ship operation — a five-scenario self-check
Operating ships carrying passengers and cargo bears wide liability for casualty and damage.
Owners of fishing vessels bear employer liability for crew casualty.
Special vessels in marine works also bear third-party-facility and pollution liability.
Even a small vessel bears liability for passenger and crew casualty.
Oil-pollution clean-up and wreck-removal costs are large legal liabilities not covered by hull insurance.
P&I's place is clear if understood as "the rest hull insurance does not handle". Where hull & machinery insurance covers physical loss to the hull/engine and three-quarters of collision liability, P&I comprehensively covers the other bodily and legal liability the owner bears — crew casualty/repatriation/medical costs, oil-pollution loss and clean-up, cargo damage/loss, the remaining one-quarter of collision liability, passenger casualty, and wreck removal and salvage. So hull insurance and P&I form a pair filling the risk gap of ship operation. But loss to the ship itself is the area of hull insurance, not P&I, and war/piracy is handled by a separate War endorsement.
Source: (General industry example)
The wording and structure points decision-makers most often overlook
Hull insurance covers hull/engine loss and three-quarters of collision liability; P&I covers the other bodily and legal liability. Equipping both is needed to leave no risk gap.
P&I handles the liability the owner bears to third parties. Physical loss to the ship itself is the area of hull & machinery insurance.
War and piracy risk is handled not by base cover but by a separate War endorsement. Check it against the navigation waters.
The questions decision-makers ask most when considering Protection & Indemnity (P&I) insurance
It comprehensively covers the bodily and legal liability an owner bears in connection with ship operation — crew casualty/repatriation, oil pollution, cargo liability, passenger casualty, wreck removal and salvage.
Hull & machinery insurance handles physical loss to the hull/engine and three-quarters of collision liability, while P&I handles the other bodily and legal liability. The two form a pair filling the risk gap.
Oil-pollution loss and clean-up costs are in P&I's cover area. It responds to liability under the relevant conventions and laws such as the Oil Pollution Compensation Guarantee Act.
Physical loss to the ship itself is the area of hull & machinery insurance, not P&I. The liability structure is separated.
Intent, an unseaworthiness known to the owner, war/piracy (a separate War endorsement), crew desertion/criminal acts and government seizure/detention are excluded.
The insurer assesses it on the ship's tonnage and type, the route and operating waters, crew numbers, the cover scope and limit, and past claim history. The exact premium and acceptance terms are confirmed after underwriting by insurers such as AIG, Chubb, DB, KB, Meritz and Hyundai.
