Under a charter party, disputes may arise that don’t necessarily relate to the liabilities covered by Charterers Liability Insurance.
Examples include:
Speed and consumption irregularities
Disagreements on delivery and redelivery of the vessel
Hire, demurrage, and despatch claims
These disputes can become very expensive to resolve – especially when they evolve into an arbitration.
To protect against this risk exposure, a separate legal defence cover has been developed – known as Freight Demurrage & Defence (FDD) cover.
It provides support for legal costs incurred in pursuing or defending such claims.
We strongly recommend charterers to take out such cover as in certain cases a claim may be in a grey zone. Your liability may not yet have been established – but you need to take up the gloves and defend yourself.
Be sure to follow us on LinkedIn for the latest in Maritime News!