What type of insurance protects a ship owner from the negligent acts of their agents?

Protection and Indemnity (P&I) insurance specifically covers a ship owner against liabilities arising from the negligent acts of their agents, as well as other third parties. This type of insurance is essential for ship owners because it provides coverage for various liabilities that may arise from the operation of their vessel, including legal claims related to accidents, injuries, or pollution caused by the ship.

P&I insurance is typically offered by mutual insurance associations and is distinct because it can cover risks that are not usually included in standard marine liability policies. This includes indemnity for loss or damage caused by the vessel, which is crucial for protecting the owner's financial interests and ensuring compliance with maritime law.

The other options do not directly address the specific coverage related to the negligent acts of agents. Marine Liability Insurance generally covers damages for which the insured could be found liable, but may not provide the same comprehensive protection for specific acts of negligence by agents. Ship Owner Protection may imply a similar coverage concept but lacks the formal recognition and specific liabilities addressed in P&I. Accidental Damage Insurance focuses on physical damage to property rather than liabilities from negligence.