Standard P&I cover for ship-owners usually includes the following risks:
- Cargo Liability for cargo loss, shortage, damage, extra handling costs or delay occurring in relation to the carriage of cargo on the entered vessel. By special arrangement, the cover can be extended to include claims arising under a contract of through-carriage.
- Crew, passengers and other persons Loss of life, personal injury and life salvage claims in respect of members of the crew and third parties, e.g. passengers, crew relatives, stevedores and other personnel on board required for the operation of the vessel. Hospital, medical, funeral and repatriation expenses (including owners' liabilities for wages as agreed) in respect of sick or injured crew members. Further, repatriation expenses, unemployment indemnities and loss of effects of shipwrecked crew.
- Pollution Oil or any other polluting substance escaping from, or caused by, an entered ship resulting in pollution of sea, land or air.
- Collision and contact liability Liability arising out of collision with another vessel, a fixed or floating object or property (e.g. docks, buoys etc.) so far as not insured under another policy. Further, liability with respect to damage to any other vessel or property thereon without actual contact is included in the cover. Full collision liability is available.
- Wreck removal and obstruction Liability and costs of compulsorily, removing, destroying or marking the wreck. Further, liability arising out of the entered vessel causing an obstruction.
- General Average contribution Cargo's proportion of general average and/or special charges not recoverable by breach of the contract of carriage. Ship's proportion of general average and salvage charges not otherwise recoverable from excessive valuation of the ship in a foreign country.
- Fines Fines imposed by government/authorities in respect of short or over delivery of cargo, cargo documents, pollution, smuggling, breach of regulations, confiscation and custom fines, etc.
- Quarantine and disinfection requirements Extraordinary expenses incurred in cases of outbreak of infectious disease. Also quarantine and disinfection expenses.
- Further, the P&I cover includes liabilities with respect to stowaways, diversion, refugees, salvage and towage, third party liability with respect to container operations, war risk, mitigation costs (sue and labour) as well as legal and associated costs.