Freight defence and demurrage insurance is essentially legal expenses’ insurance covering shipowners or charterers for their contractual disputes arising out of the operation of ships.

FD&D insurance may be likened to the fourth leg of the table after H&M, P&I and Charterers Liability. Although the assured bears the result of such a dispute, nevertheless the concerned underwriters pay for all the legal costs of a dispute including general advice, the issue of dunning letters and/or arbitrating or litigating the dispute through to an award or judgment. Indeed were the action to fail and opponents costs awarded against the assured, then these also would be paid by underwriters.

FD&D also covers matters which have not (yet) escalated into a dispute. We run the provision of such FD&D legal services for a various Lloyd's and Company underwriters usually led by Travelers Syndicate 5000, also featured on the slip may be Navigators Insurance Company, AIG and Federal Insurance Company. Under this facility we are available on a 24/7 basis to provide legal advice on the assured's shipping contracts. This legal advice service, although reality based, can be an extremely useful tool in the shipowner's or charterer's toolbox. Charterers engaged in international trade contracting with overseas entities can have legal support and assistance direct from senior London solicitors ready to step in and fight their case as and when needed.

We are also engaged by the FD&D departments of various international P&I clubs to provide legal case handling assistance.

For typical problem areas see the links to: