We provide our customers with P&I Insurance to insure against owners and charterers alike for their exposures to claims from third parties and other related expenses arising out of the ownership or operation of a vessel.
Typically, P&I cover should insure against claims by third party liabilities for:
- Loss of or Damage to Cargo
- Loss of or Damage to Third Party Property
- General Average & Salvage
- Freight, Defence & Demurrage
- Injury to Crew, Stevedores and other Third Party
- Pollution including Clean Up Costs
- Wreck removal
Mutual vs Fixed Premium Option
P&I (Mutual) Cubs are the traditional options by shipowners and provides its members with risk pooling. Where an insurance company charges a premium for accepting a risk, a P&I Club member instead pays a “call”. This is a sum of money that is put into the Club’s risk pool. If there is a significantly poor year in which the pool has been reduced substantially club members will have to pay a supplementary call to replenish the pool.
Fixed premium P&I cover, as the name implies, is fixed and the shipowner incurs a known fixed cost for his cover as opposed to a member of a mutual club. Fixed premium cover is more suited to small vessel owners as the general market holds the view that a mutual club, being formed of shipowners, will tend to favour the larger shipowners.