Atlas Claims InsightsPublished 14 October 2026 · Reviewed 14 October 2026 · 4 min readKey takeaways
- FD&D (freight, demurrage and defence) cover helps shipowners and charterers with legal costs of commercial disputes.
- It is discretionary: the club decides whether a claim merits support.
- It typically covers costs, not the amount in dispute itself.
- Notify the club early and keep it informed, or support may be reduced.
Freight, demurrage and defence (FD&D) cover, sometimes called “defence” cover, is offered by most P&I clubs to shipowners and charterers. It helps with the legal costs of commercial disputes that ordinary P&I cover does not deal with.
What it typically covers
- Legal and expert costs of charter party disputes, including demurrage, off-hire and unpaid hire.
- Disputes under sale, purchase and shipbuilding contracts.
- Disputes with suppliers, repairers and agents.
What it usually does not cover
- The amount in dispute itself, such as the unpaid hire or the claim against you.
- Costs incurred without the club’s approval.
- Matters excluded by the club rules or the terms of entry.
It is discretionary
The club decides whether, and to what extent, to support a claim, taking into account its merits and whether the member has acted reasonably. Support can be limited or withdrawn.
Using it effectively
- Notify the club as early as possible.
- Share the documents and keep the club informed of developments.
- Agree the strategy and budget before major costs are incurred.
How we fit in: preparation and negotiation by a claims consultancy can complement club support, particularly for smaller claims that are uneconomic to litigate. We are happy to work alongside your club and its appointed lawyers.
Quick answers
What does FD&D cover pay for?
Mainly legal and expert costs of commercial disputes such as charter party, demurrage and shipbuilding disputes, at the club’s discretion.
Does FD&D pay the claim amount?
Generally no. It supports the cost of pursuing or defending the claim, not the sum in dispute.
Need help with a specific matter? Send us the documents for a free, confidential review, or message us on WhatsApp at any hour on +44 7429 535705. Start a case review.
This guide is general information about the law of England and Wales as at October 2026. It is not legal advice and may not cover your situation. Atlas Claims is not a law firm; for advice on your legal rights or on litigation, consult a qualified solicitor.
