Shipping is a contract-driven business, and where there are contracts, there are disputes. Every voyage rests on a web of agreements – charterparties, bills of lading, bunker supply contracts, agency agreements – and a disagreement under any one of them can put significant sums at risk. Our Freight & Demurrage cover (often referred to as FD&D or Defence cover) provides Members with insurance for legal fees and associated costs relating to claims, disputes and other matters of a shipping nature, together with access to some of the most experienced dispute-resolution specialists in the market.
Not Just Freight and Demurrage
Although the cover is traditionally referred to as Freight & Demurrage cover, it is not restricted only to claims for freight and demurrage. The cover responds to a wide spectrum of shipping-related disputes arising under charterparties, contracts of affreightment, bills of lading, shipbuilding and repair contracts, sale and purchase agreements, bunker supply contracts, agency agreements and many other contracts entered into in connection with the operation of the entered ship. If the dispute is of a shipping nature and concerns the entered ship, the starting point is that FD&D cover can respond.
What the Cover Provides
The cover responds to legal fees and expenses for pursuing and defending claims; arbitrators’ and court fees; experts’ and surveyors’ fees; the costs of obtaining security for claims and of enforcing awards and judgments; and access at every stage to the club’s in-house lawyers and claims specialists, whose advice is available to Members as part of the service.
The Value of Defence Cover
Legal proceedings in shipping disputes – particularly London or Singapore arbitration – can be lengthy and costly. Without Defence cover, many Members would face a difficult choice between writing off legitimate claims or funding expensive proceedings with uncertain outcomes. FD&D cover removes that dilemma: the merits of the case, not the cost of pursuing it, determine the strategy. Over the life of an entry, the recoveries achieved and the claims successfully defended will often repay the premium many times over.
Prevention Before Cure
Our team also adds value long before any dispute arises. Members regularly consult our FD&D lawyers when negotiating charterparties and other contracts, and we are happy to review terms, advise on clauses and flag the wordings that most often lead to trouble. A well-drafted contract is the cheapest dispute you will never have.
Part of a Complete Service
FD&D cover works hand in hand with our liability covers, and Members who place both with the club benefit from a single claims team with full knowledge of their business. See our Insurance Cover List for the full range of claims and disputes falling within this cover.
Why Work With Us
As a specialist marine insurance provider, we combine deep technical knowledge with a genuinely commercial outlook. Our Members benefit from competitive and transparent terms, cover that is tailored to their actual trading pattern rather than a one-size-fits-all wording, and a team that is available around the clock, every day of the year. We measure our success not by the policies we issue, but by the problems we solve for our Members – quickly, quietly and cost-effectively.
Get in Touch
If you would like to learn more about our Freight & Demurrage cover, request a quotation, or simply discuss your current insurance arrangements with an expert, our underwriting team would be delighted to hear from you. Contact us today by phone or e-mail, or complete the enquiry form on our contact page, and one of our specialists will come back to you within one business day. There is no obligation, and every enquiry is handled in strict confidence.