Protection and Indemnity Insurance is considered to be an entirely different class from other fields of marine insurance. It deals with the liability of the ship owner and whilst P and I insurance is available in the commercial hull and yacht market, the cover may be somewhat limited and policy limits may be restricted to the value of the hull.
Rather, P and I insurance, particularly for large hull operators, has been made available by the Clubs based principally in London, Scandinavia and to a lesser extent, in the United States and Japan. The Clubs are in most cases mutuals owned and run by and for ship owners. The Clubs are managed by separate corporate entities consisting of specialized teams who offer underwriting, claims and loss prevention expertise to their members. Unlike the fixed premium commercial markets, an insured ship owner may be liable for additional ‘calls’ to fund claims where there have been sufficiently adverse underwriting results in previous years.
The ‘insurance policies’ of the Clubs are again quite different from commercial markets in that the terms of the cover can be found in the Club Rules. One particularly interesting fact about P and I insurance offered by the Clubs is that there are generally no policy limits.
Over the years, specialty areas of P and I have evolved. For example, there are Clubs that offer war risks, pollution liability and liability cover for transport intermediaries and operators such as stevedores and freight forwarders.
Alan has worked for a P and I agency and has extensive experience in the handling of P and I and liability defense claims in the area of commercial hull and yacht. He also administers the claims on a program based in the United States which offers cover and defense for NVOCCs.
In 1989, he was instrumental in successfully implementing a liability program for NVOCCs, freight forwarders and other transport intermediaries in Canada on behalf of the London based TT Club. In 1988, he was responsible for setting up a similar program in the United States and has over 10 years underwriting experience in this class. He currently handles and adjusts claims (including the handling of the defense) on a book of business that handles over 300 American, Canadian and overseas NVOCCs and forwarders. He has extensive experience in third party defense.
Alan has been retained as an expert witness on P and I cases