Answer
FD&D = Freight, Demurrage & Defence.
It is a separate legal-costs insurance cover commonly offered by P&I Clubs. Its purpose is to pay or contribute toward the legal and other costs of pursuing or defending certain maritime disputes connected with the operation of the entered ship.
What does FD&D cover?Typical disputes include:
- Freight disputes
- Demurrage / laytime disputes
- Charterparty disputes
- Bills of Lading and contracts of carriage
- Loading, stowage, trimming and discharge disputes
- Ship repair or supply disputes
- Agency/brokerage disputes
- Certain disputes concerning delay or damage to the ship.
Normal P&I cover mainly indemnifies the member for the actual third-party liability, such as cargo damage, crew injury or pollution.
FD&D mainly covers the legal costs of fighting a dispute where the underlying commercial claim itself may not be covered by ordinary P&I.