What to Know About Freight, Demurrage and Defence Insurance Claim

Maritime safety is important, just like in land and air transportation. Transportation companies should be mainly responsible for the freight and the lives of every human who are riding the said mode of transportation. That is why there are various types of insurances available to every type of transportation. The shipping business is a large global industry. It has provided jobs to countless men and women. At the same time, it also provided people the opportunity to travel to different places and enjoy the beauty of the waters. Some maritime vessels, such as yachts and cruise ships, can create a whole new experience.

What is FD&D?

There are also maritime insurances for ship and other water vessel fleet owners. One of these is freight, demurrage, and defense (FD&D) insurance. It refers to the insurance provided to members for the expenses for legal representation and other factors that are related to claims and disputes. These disputes are usually not included in the scope of hull and machinery (H&M) or protection and indemnity (P&I) insurances. FD&D may cover the expense of defending or pursuing claims in line with the bills of lading, contracts of carriage and affreightment, and charterparties. Similarly, it also covers Vessel building contracts, repair contracts, sale, and purchase contracts, Crew contracts, and Marine Insurance contracts among a few.

Importance of FD&D insurance

For one, offers legal cost coverage as a protection for the members’ assets and interests. It also provides support in recovering any claims for any uninsured losses as well as offering protection against any actions inflicted upon them. In addition, it is an ideal loss prevention tool. For ship and marine vessel owner, it is important to choose a company that offers good maritime insurance terms and conditions. For one, the company should employ highly-skilled and knowledgeable personnel who can deal with FD&D and other maritime insurance claims. Legal costs can be expensive, even if the cause is simple and uncomplicated. Accidents may also occur when you least expect it, that is why it is important to be prepared for such unseen situations. Companies offering insurances such as FD&D will be more than glad to offer their expertise in any shipping-related legal matters.

The future of maritime insurances

Just like the constant evolution of technology, including shipping improvements, so should be the protection of shipping owners’ welfare and investment. FD&D and other types of maritime insurances can help a lot of shipping owners in terms of better service and protection of their rights. Unfortunately, there are still a lot of maritime disputes that have not yet fully solved. In effect, ship owners and operators continue to spend thousands of dollars to settle any maritime issues they are involved in. This can affect their profit and their overall reputation. That is why ship owners and operators should invest in FD&D and other kinds of maritime insurances. Not only can it ensure the protection of your fleet, the passengers, and your cargo, but also your business as well.