Overview

Freight, Demurrage & Defence (FDD) insurance — known in some markets as FD&D — covers the legal costs and expenses incurred in pursuing or defending commercial disputes arising from vessel operations. FDD is a separate class of cover from P&I: P&I covers liability to third parties; FDD covers the cost of commercial disputes between contracting parties.

FDD does not indemnify the underlying claim amount — it covers the professional costs of resolving it: lawyers, arbitrators, surveyors, expert witnesses and court fees.

FDD is particularly valuable for operators engaged in time charter or voyage charter arrangements, where disputes over freight, laytime and demurrage are frequent and legal costs can be substantial.

Coverages