Protection & Indemnity

protection_and_indemnityWe 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
  • Collision
  • Loss of or Damage to Third Party Property
  • Fines
  • General Average & Salvage
  • Freight, Defence & Demurrage
  • Injury to Crew, Stevedores and other Third Party
  • Pollution including Clean Up Costs
  • Towage
  • 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.

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