Who needs Defence cover?
Since the uninsured disputes and claims often arise under the terms or breach thereof in a charter party, booking note, contract of affreightment or agency agreement, Defence cover generally suits anyone who is a party to such contract. For instance shipowners, charterers and operators

Where does Defence cover differ from P&I Cover?

• Defence cover provides insurance for legal costs and expenses but, unlike P&I cover, it does not provide insurance for the underlying claim.
• Defence cover is discretionary. Broadly speaking, this means that in certain cases, the DSD Board of Directors have the discretion to decide whether or not to support the Assureds for instance in cases where: there are serious doubts with regard to the merits or evidence in support of the claim;
1. the Assureds disregard the advice given by DSD’s Defence team;
2. the likely costs exceed the amount in dispute;
3. the Assureds fail to make proper checks before fixing;
4. the Assureds knowingly take an unacceptable risk.