Texas State Government Employees Insurance Company (GEICO) Licensing Practice Test 2025 - Free GEICO Licensing Exam Questions and Study Guide

The correct choice is Protection and Indemnity, as it specifically provides coverage for liabilities arising from the negligence of the crew while operating a vessel. This form of insurance is essential for shipowners because it covers various liabilities, including bodily injury and property damage claims against the vessel, which could occur due to crew negligence.

In the maritime industry, crew members are often responsible for the operation and handling of the vessel. Therefore, when their actions result in accidents or damage, Protection and Indemnity insurance helps mitigate the financial repercussions faced by the shipowner, ensuring that they are protected from claims that could arise as a direct result of crew negligence.

Freight insurance covers a different aspect; it primarily protects against loss of the freight income due to shipment losses or damage, not directly linked to crew actions. Hull insurance focuses specifically on the physical damage to the ship itself and does not address liabilities for crew negligence. Cargo insurance covers loss or damage to the goods being transported but does not provide liability protection for actions taken by the crew. Each of these options serves distinct purposes in maritime insurance, making Protection and Indemnity the only suitable choice for coverage related to crew negligence.