This insurance, usually referred to as "P&I," provides cover to shipowners, operators, and charterers for third-party liabilities encountered in the commercial operation of entered vessels. The main risks covered are liabilities, expenses, and costs for:

  • Loss of life, injury and illness of crew, passengers and other persons
  • Cargo loss, shortage or damage
  • Collision
  • Damage to docks, buoys and other fixed and floating objects
  • Wreck removal
  • Pollution
  • Fines and penalties
  • Mutiny and misconduct by crew
  • Crew repatriation and substitution
  • Damage to property on board the insured vessel
  • Quarantine
  • Vessel Diversion Expenses
  • Unrecoverable General Average contributions
  • Vessel's proportion of General Average

This cover is referred to as "Class I," and the Class I Rules are the basic contractual terms upon which the owners/operators, or "members," are insured. For full details of the cover, please see our Rules.

P&I cover is designed to complement a vessel's hull and machinery insurance and related covers. It is distinguished from ordinary marine insurance in that it is based on the not-for-profit principle of mutuality where members of the club are both the insurers and the insureds. As a consequence, the scope of cover offered by P&I insurance is unsurpassed in its reach and cost-effectiveness.

The American Club's primary insurance product is P&I cover, which is marked by the high level of service offered to its members in respect of the provision of required trading documents, risk management, claims handling and providing general advice on international shipping matters. In particular, the experienced claims handlers at the Club work closely with its members to solve problems and minimize losses and liabilities by, for example, managing experts, or directly negotiating with third party claimants. In addition, our claims and other service teams are able to provide pro-active contractual and loss prevention advice to avoid problems before they arise.