Protection & Indemnity (P&I)
P&I insurance covers Members’ legal and contractual liabilities concerning third parties incurred during the operation of the entered ship. These legal and contractual liabilities are of varied nature and could concern people, cargo, pollution, and other types of liabilities.
P&I insurance developed as an offspring of the mutual Hull Clubs during the second half of the 19th Century. The hull cover available on the market left the shipowner exposed to a portion of the liabilities that arose in the case of a collision. To provide cover for these and other liability risks, ship owners used existing Hull Clubs or formed new Clubs based on the concept of mutuality. By extending the scope of the liabilities covered, the first P&I Clubs were born.