P&I Sanctions Clause

A clause in protection-and-indemnity cover that suspends or excludes the club’s liability where providing cover, or paying a claim, would expose the club to a sanction, prohibition, or restriction. The International Group clubs carry such clauses so that a member trading into a sanctioned voyage loses cover for that trade. The clause protects the club and its reinsurers from designation and from breaching US, EU, or UK measures; it leaves the owner uninsured for the sanctioned portion of the risk.