P&I insurance cover all claims from a third party,the main difference between Hull and Machinery and P&I insurance is that Hull and Machinery covers damage to the ship itself where P&I covers damages happens to others property such as port facilities, marine environments, crew etc

Scope of cover:

• Crew of the vessel liability
• Persons other than seamen and passengers
• Expenses of diversion of an insured ship
• Collision with other ships
• Damage to floating objects
• Marine environment pollution
• Towing expenses 
• Wreck removal
• Pollution by bunker
• Cargo
• Special compensation to salvors
• Liability in respect of war and strike risks