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QQuantica Marine
Product · FD&D

FD&D Legal Cost Cover for Marine Disputes

Legal and expert cost cover for marine commercial disputes. FD&D pays the cost of pursuing or defending the claim — it does not pay the disputed principal amount.

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What it covers

  • ◆Charterparty disputes
  • ◆Freight disputes
  • ◆Demurrage and laytime disputes
  • ◆Cargo disputes and bill of lading issues
  • ◆Sale and purchase (S&P) disputes
  • ◆Repair and drydock disputes
  • ◆Bunker quality disputes
  • ◆Crew and management contract disputes

Who it is for

  • ◆Shipowners exposed to commercial disputes
  • ◆Charterers and operators
  • ◆Banks and lessors with operational interest in disputes
Pricing

How Quantica prices it

FD&D is priced on the frequency of disputes by trade and operator type, the average legal cost per dispute and the maximum cost limit. The engine adjusts for jurisdiction, arbitration forum and historic claims behaviour.

Reinsurance is typically aggregate-based given the long-tail nature of legal cost development; reserving uses Bornhuetter-Ferguson with frequency-severity overlays.

Underwriting data required

  • • Operator and trade profile
  • • Historic dispute record
  • • Charterparty types in use
  • • Preferred jurisdiction and arbitration forum

Claims examples

  • • Demurrage arbitration in London
  • • Cargo claim under bill of lading
  • • Sale and purchase dispute on memorandum of agreement
  • • Repair quality dispute with shipyard

Risk controls

  • • Cost limits per claim and per year
  • • Panel of approved lawyers and experts
  • • Mandatory case strategy approval
  • • Settlement authority thresholds
Reinsurance

Reinsurance considerations

FD&D is usually placed with stop-loss or aggregate excess-of-loss reinsurance to dampen volatility from large legal cost runs. Quantica reports gross and ceded legal cost development for IFRS 17 and Solvency II-ready extracts.
This product description is illustrative. Cover, exclusions and policy terms depend on the final wording and applicable regulatory authorisations. No insurance is offered until appropriate authorisations are in place.