Maritime Law, Insurance & Enforcement
P&I Insurance in Ship Finance
Summary
Protection and indemnity (P&I) responds to specified third-party maritime liabilities through club rules or other insurance arrangements.
Why this matters in ship finance
P&I availability, exclusions and club calls influence the vessel’s ability to operate and protect lenders from uninsured liabilities.
The concept
P&I is distinct from hull cover. EU Directive 2009/20/EC sets a defined minimum insurance framework for maritime claims; international liability conventions and club rules address other obligations.
How it is used in practice
Check club entry, limits, deductibles, calls, certificates, sanctions provisions, exclusions and loss-payable or assignment arrangements relevant to lending.
Practical issues
A P&I entry certificate does not imply all liabilities are insured; coverage is conditional and club contractual terms may limit rights of mortgagees.
How ShipFinance.ai uses this concept
Add a P&I coverage and certificate checklist with credit-impact stress cases.
Key takeaways
- P&I cover is designed for specified third-party liabilities.
- Statutory insurance does not equal a complete lender package.
- Read club rules, exclusions and certificates.