Freight, Demurrage and Defence Insurance

The separate class of insurance covers the legal costs and expenses arising in connection with disputes relating to the operation, ownership and management of an entered ship which are not covered by other forms of insurance, such as the ship-owners P&I or H&M insurance. FD&D insurance provides cover for legal advice and legal costs incurred by ship-owners in pursuing or defending a variety of different types of claims.

FD&D only provides insurance for ship-owners against costs. It does not provide ship-owners with cover for the actual substantive liabilities themselves, but does provide cover for the costs incurred as a result of pursuing or defending those liabilities.

Typical costs covered in an FD&D claim are those of lawyers, correspondents, arbitrators, surveyors and other experts.