P&I Club

Category: infrastructure

A mutual insurance association of shipowners that pools capital to provide third-party liability protection.

Unlike traditional insurance stock companies, P&I clubs operate as non-profit cooperatives. The largest shipowners globally join these clubs, sharing the immense, unpredictable financial risks of oil spills, international crew injuries, and maritime legal disputes through collective assessments.

Common Examples

• The shipping line consulted their P&I club handlers to coordinate the salvage response and pollution containment following the port accident.
• P&I clubs manage the vast majority of international maritime liability risk through a sophisticated network of mutual capital pooling.