1 Introduction

Shipowners are increasingly liable to third parties,1 i.e., for loss of or damage to cargo carried on the ship, damage to the environment and the loss of life or personal injury of persons carried on board. Claims may be brought in different ways, i.e., in contract, such as under a charter party, a bill of lading or a passenger ticket, in tort, or under statute, i.e., in the case of strict liability.2 P&I Club cover is insurance for such third-party liabilities. The products offered by P&I Clubs have developed around third-party liability resting with the shipowners through these different mechanisms.