Shipowners insure against loss of or damage to their ships with hull underwriters. They look to their P&I club for insurance in respect of third party liabilities and expenses arising from owning ships or operating ships as principals.
The term “P&I” stands for Protection and Indemnity. It is not hull insurance, war risk insurance, loss of profit/freight insurance, detention insurance, strike insurance or uninsured legal expenses (Defence)cover.
The following risks typically covered by P&I Clubs are briefly described in this 'layman's guide' to the Rules of the Club:
Freight, demurrage and defence risks can be insured with the UK Defence Club. The UK Defence club provide insurance for the legal and other costs of pursuing and defending claims related to entered ships where the sum in dispute is not insured. A review of the UK Defence club cover can be found at the back of this brochure.