P & I Club

Summary of P & I Club

A mutual property and indemnity insurance association established by shipowners to provide coverage against various perils, including: injury to crewmen, collision liability, cargo damage, damage caused by the vessel's wake, costs arising from removal of a wreck, fines and penalties, uncollectible contributions by cargo interests in general average, and legal expenses arising from liability claims. Most P & I clubs are oriented toward vessels of common nationality, although many clubs accept foreign members. The directors of the club are usually drawn from the management of the participating carriers, although day-to-day management is often performed by an outside organization for a fee.

(Main Author: William J. Miller)