Freight, Demurrage & Defence (FD&D) cover

Legal costs and expenses cover to help shipowners, charterers and operators resolve disputes arising from their shipping operations.

Access to experienced claims and legal teams across London, Athens and Hong Kong, providing practical advice, hands-on support and proactive case management to help protect your interests throughout a dispute.

Overview

Freight, Demurrage & Defence (FD&D) is a discretionary cover. It helps you handle the legal and other expert costs and expenses for disputes relating to charterparties, cargo contracts and other maritime agreements, rather than damages or commercial losses.

Who and what we cover

FD&D cover supports you against disputes connected with the operation or commercial employment of an insured ship.

This may include disputes relating to:

  • Charterparty performance or interpretation

  • Freight, hire or demurrage claims

  • Bills of lading and cargo contracts

  • Cargo handling, stowage or delivery

  • Bunker quality or supply

  • Shipbuilding, purchase or sale agreements

  • Pre-delivery and newbuilding disputes, including issues during construction, delivery or sea trials

  • Ship repair or conversion contracts

  • Claims involving crew, passengers or authorities

  • Disputes with agents, brokers or other maritime counterparties

Cover may also include support during official investigations and legal advice on issues affecting the ship’s operations.

Key features and benefits

  • Support with legal costs, charges and disbursements

  • Expert legal guidance from our experienced maritime lawyers across our international offices

  • Early dispute assessment, support and guidance

  • Support across maritime contracts

  • Global expertise

  • Flexible approach to lawyer selection with no set panel

  • Member-focused support

Why FD&D cover?

Commercial shipping operations rely on complex contracts and commercial relationships.

Even where operations run smoothly, there can be disputes over charterparty performance, cargo handling, payments or contractual obligations.

FD&D cover helps you handle the legal costs of these disputes, backed by advice from experienced maritime specialists.

What your cover includes

FD&D cover provides financial support based on the specific terms agreed when we first insure the ship.

  • Cover up to US$7.5m for any single claim, dispute, or series of related proceedings (unless otherwise agreed)

Legal costs must be approved by us in advance. Members pay costs upfront and recover them through the claims process.

In most cases a deductible of 25% of legal costs, fees and expenses applies.

Club rules and agreed terms

Cover applies according to our rules and the terms agreed when we insure the ship.

Experts in FD&D cover

Our underwriting, claims, legal and loss prevention specialists bring deep experience of the shipping industry for practical support at every stage.

With teams in London, Hong Kong, Piraeus, Limassol, Seoul and Shanghai, and a trusted global network of local expertise, we’re available wherever and whenever you need us

Loss and incident handling

When a dispute arises, getting early personal support can make all the difference – potentially helping to resolve problems before they escalate into formal proceedings. You can contact us straight away for guidance.

You'll speak directly to experienced people who will review the issue, assess the case and advise you on the best course of action, so you can move forward with clarity.

Claims handling

Where disputes proceed to arbitration, litigation or other proceedings, our team will work closely with you to appoint the appropriate lawyers, if needed – and support you from start to finish. Our focus is on resolving claims quickly and fairly, so you can focus on your operations.