stands for? Do you know


what P&I


Protection and Indemnity insurance, more commonly known as P&I insurance, is a type of mutual maritime coverage offered by a P&I club. While marine insurance companies offer “hull and machinery” coverage for shipowners and cargo insurance for cargo owners, a P&I club covers broader, open-ended risks that conventional insurers are typically unwilling to insure.


Protection is essential for ensuring the safety of seafarers and ships while Indemnity is necessary to compensate for any loss of life, environment, and property. P&I plays a critical role in protecting crews, the marine environment, coastal communities, and third-party claimants in the event of a shipping casualty or incident.


In essence, a P&I Club is owned by its shipowner and charterer members, and its operations and activities are overseen by a board of directors, or committee, elected from the membership. The day- to-day operations of the Clubs are handled by professional managers, either “in-house” or external, who are appointed by and report to their Club board/committee.


The coverage offered by P&I Clubs has grown and adapted over time. What began as protection against collision liability has expanded to address a broad range of people- related risks in the maritime industry. Today, it offers the financial strength needed to ensure ships can operate in an environmentally conscious world, where issues like pollution and wreck removal are high priorities.


Today, P&I Clubs insures their members against a wide variety of risks including:


- Injury, illness, and death of crew - Injury, illness, and death of passengers and other third parties on board


- Stowaways and the costs of repatriating them


- Damaged or lost cargo - Collisions - Wreck removal - Damage to property - Pollution


Loss Prevention is at the heart of P&I Clubs


Protection and Indemnity (P&I) Clubs and loss prevention are closely related because one of the core missions of P&I Clubs is to minimize risks and prevent losses for their members. Preventing incidents that could result in claims directly benefits P&I Clubs, as fewer claims mean lower payouts, better sustainability of funds, and potentially lower premiums for members.


Loss prevention resources from P&I clubs are designed to support members in managing risk, preventing accidents, and ensuring compliance with industry standards. These resources are often easily


128 | ISSUE 111 | MAR 2025 | THE REPORT


accessible online and are crucial in helping shipping companies improve safety, reduce claims, and ultimately safeguard their business operations.


Joakim Enström, Senior Loss Prevention Officer at The Swedish Club has stated that the main loss prevention issues fall into four areas:


1. Navigational claims 2. Cargo claims 3. People claims 4. Machinery damage


P&I Clubs publish loss prevention publications written in language which is easily accessible to all nationalities and in a format which can be used in monthly safety training meetings.


“This way, when the case studies are used in training, the seafarer can identify with the problems faced, and some of the difficult decisions that those on board have had to make. When debating the case study with their crew colleagues, the reality of the situations makes discussions more relevant, and learning outcomes more likely to applied should they themselves face a similar situation,” Enström said.


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100  |  Page 101  |  Page 102  |  Page 103  |  Page 104  |  Page 105  |  Page 106  |  Page 107  |  Page 108  |  Page 109  |  Page 110  |  Page 111  |  Page 112  |  Page 113  |  Page 114  |  Page 115  |  Page 116  |  Page 117  |  Page 118  |  Page 119  |  Page 120  |  Page 121  |  Page 122  |  Page 123  |  Page 124  |  Page 125  |  Page 126  |  Page 127  |  Page 128  |  Page 129  |  Page 130  |  Page 131  |  Page 132  |  Page 133  |  Page 134  |  Page 135  |  Page 136  |  Page 137  |  Page 138  |  Page 139  |  Page 140  |  Page 141  |  Page 142  |  Page 143  |  Page 144  |  Page 145  |  Page 146  |  Page 147  |  Page 148