Freight, Demurrage, and Defence (FD&D) cover, also known as Defence cover, is an important form of insurance in the maritime industry. It is distinct from Hull and Machinery and Protection and Indemnity (P&I) insurance, focusing primarily on legal costs and disputes. Our insurance company provides legal costs insurance through our Freight Demurrage and Defence (FD&D) cover.

Here are its main functions:

• Coverage for Physical Damage:
  H&M insurance primarily covers physical damage to the ship's hull and machinery. This includes damages from a wide range of maritime hazards like collisions, grounding, fire, piracy, and storms.
• Legal Cost Coverage:
  FD&D cover provides financial assistance for legal costs incurred in a wide range of maritime disputes. This includes both the cost of legal representation and related expenses.
• Dispute Resolution Support:
  The cover supports the insured in resolving disputes that may arise out of charter parties, cargo claims, contractual disagreements, and other commercial maritime operations.
• Defence Against Claims:
  It helps in defending the shipowner, charterer, or operator against claims made by third parties. This could involve legal advice and representation in court or arbitration proceedings.
• Assistance in Recovering Claims:
  FD&D cover also assists in pursuing claims against third parties, such as recovering unpaid freight, charter hire, or expenses related to cargo damage.
• Advisory Services:
  Insurers often provide expert advice on avoiding disputes and managing risks in maritime contracts and operations.
• Coverage of Demurrage Claims:
  This insurance helps in dealing with demurrage claims - compensation for delays beyond the agreed laytime for loading or unloading cargo.
• Breach of Contract Issues:
  It covers disputes arising from alleged breaches of contract, providing support in both defending and pursuing such claims.
• Customization of Cover:
  The scope of FD&D insurance can be tailored to the specific needs of the policyholder, depending on their role in the maritime industry and the nature of their operations.
• Flexibility in Choice of Lawyers:
  Policyholders are often allowed to choose their own lawyers, which is not always the case with other types of marine insurance.
• Assistance in Negotiations and Mediations:
  The cover includes support in negotiating settlements and participating in mediations, which can be a more cost-effective and quicker way to resolve disputes than litigation.

FD&D cover is particularly valuable in the maritime industry due to the complexity and variety of legal issues that can arise, and the potentially high costs of resolving these disputes. It provides a safety net for shipowners, charterers, and operators against the financial and legal challenges encountered in the course of maritime business operations.