FFO and RDC risks
The inclusion of a **RDC (Running Down Clause) in H&M insurance cover helps the shipowner in a situation where he is liable for damage to another vessel as a result of a collision. In such a case, the insurer will also compensate the other parties involved, i.e. third parties affected by the collision: passengers, crew and owners of cargo on board the damaged vessel.
Fixed and Floating Objects (FFO) covers the shipowner’s liability for damage to shore-based structures and floating objects (for example, collision of a ship with a quay, port facilities, floating hut, buoy or fire buoy).
These two risks can be included in both the shipowner’s liability (P&I) policy and the hull and machinery (H&M) policy. The cover may also be split between the two policies, for example ¼ H&M and ¾ P&I respectively.**.