What is FDD: First Dollar Defense on Professional Liability / Errors and Omissions Insurance
The fist dollar defense is a term used in E&O insurance. It means that the insurance company will cover the first dollar of any damages that are awarded to the policyholder. This is in contrast to a policy where the insurance company only covers a certain amount of damages, such as the first $10,000. The fist dollar defense is beneficial to policyholders because it ensures that they will not have to pay any damages out of pocket.