First Dollar Defence / First Dollar Defense

If a policy includes first dollar defence (FDD) coverage, then the insurance company begins paying defence costs right from the ‘first dollar’; right from the start – rather than the insured party first paying out the retention amount.

For example, the policy wording may state:  “For any Claim, no Retention shall apply to the first $25,000 in Defence Costs incurred as E-Discovery Consultant Services.”

Related term: Shrinking limits