P&I Clubs

P&I Clubs, or Protection and Indemnity Clubs, are mutual insurance organizations that provide liability coverage for shipowners and operators. They help protect against risks such as damage to third parties, crew injuries, and pollution from vessels. Members pay annual contributions, and the club uses these funds to cover claims and legal expenses. Unlike traditional insurance, P&I Clubs operate on a cooperative basis, meaning any excess funds are returned to members. They play a crucial role in the maritime industry by ensuring that shipowners can effectively manage the financial risks associated with operating vessels.