P&I Club

A protection and indemnity club is a mutual association of shipowners and charterers that covers the third-party liabilities a hull policy excludes: cargo claims, personal injury and death, collision liability not covered by hull, pollution, wreck removal, and fines. Members pay calls rather than fixed premiums and share losses mutually, with large claims pooled and reinsured through the International Group. The club’s letter of undertaking is the usual security that releases a ship from arrest in lieu of cash or a bank guarantee.