Protection and indemnity cover, taken by shipowners, charterers and operators against third-party liabilities arising from operating a ship — injury to crew and passengers, pollution, damage to fixed objects, wreck removal, cargo claims brought against the carrier. It is written by mutual clubs rather than commercial insurers: the members are both the insured and the insurers, so the risk is borne collectively and the club can call for further contributions after the policy year if claims exceed what was budgeted. Premium is therefore an estimate rather than a fixed price. It is liability cover, distinct from hull and machinery cover, which insures the ship, and from cargo cover, which insures the goods.
Why this entry carries no source list. This is a product category or an official document type rather than a defined term. What it covers or attests is set by the policy wording, the facility terms, or the requirements of the country demanding it — and those differ by insurer, by bank and by jurisdiction. Naming one provider’s brochure as the authority would dress a single firm’s practice as a general rule. Read the wording you are actually being offered.