P&I is an insurance in respect of third party liabilities and expenses arising from owning ships or operating ships, covering:
Collision Liability
The custom has been for hull policies to provide insurance for three fourths of the shipowner's liability for collisions with the remaining one fourth being covered by the P&I club. However, sometimes either the hull policy or P&I club will cover four fourths of the collision liability. The P&I cover also extends to cover that proportion of liability which cannot be recovered under the hull policy due to such liability exceeding the hull policy insured value

Other Major Risks covered:
Liability to Fixed & Floating Objects
  • Damage caused by contact between the entered ship and property belonging to other persons, including docks, wharves, locks, jetties and harbours.
Cargo Liabilities
  • Cover for the shipowner's liability under the contract of carriage or in tort to pay for any loss or damage of cargo
Pollution Liability
  • Our Coverage meets the requirements of International Port Authorities and we can provide CLC 92 and Bunker Convention Blue Cards to enable trading to the Signatory States of these Conventions
  • A variety of fines may have to paid by a shipowner, either directly or because of an obligation to reimburse his seagoing employees in respect of fines levied against them. Most of these fines are covered within P&I
Crew, Passenger & Third Party Liability
  • Personal injury to or illness or loss of life of crew members
  • Personal injury to or loss of life of stevedores
  • Personal injury to or loss of life of passengers and others
  • Loss of Personal Effects of crew.
  • Diversion Expenses
Wreck Removal
  • If hull underwriters accept the vessel as being a total loss but decline to take over the wreck P&I provides cover for the cost of removing the wreck of the vessel in response to a wreck removal order issued by the responsible Maritime or Port Authority. The value of the wreck should be set-off against the claim
A comprehensive list of all the claims covered can be found in the Class 1 Rules, accessible in the 'Rule Book' section of this website.