Which type of marine insurance would cover a ship owner's exposure for claims resulting from an oil spill on his vessel?

• A. P & I Insurance
• B. Hull Insurance
• C. Cargo Insurance
• D. War Risk Insurance

Answer: (A)

Oil spills create liabilities to third parties, not just damage to the vessel itself. Protection and Indemnity insurance is built to cover shipowners’ legal responsibilities arising from operating the vessel, including pollution from oil spills, cleanup costs, and claims by affected parties. Hull insurance protects the ship’s physical hull and machinery, not third‑party pollution claims. Cargo insurance covers the goods being transported, while war risk insurance covers damage from war-related events. Since oil‑spill liabilities are a classic third‑party pollution exposure arising from vessel operations, P&I insurance is the best fit.