When a person or a company is sued, one of the biggest concerns is the cost of legal defense. Legal fees can add up quickly, putting a significant financial burden on individuals or businesses. To address this concern, there is an insurance coverage known as “First Dollar Defense”. First Dollar Defense (also FDD) is an insurance coverage option that offsets the legal expenses of a defendant from the very first dollar of a lawsuit. This means that the policy pays the attorney fees and other legal expenses as soon as a claim is filed, without requiring the defendant to first pay a deductible or any other out-of-pocket expenses.

First Dollar Defense is particularly useful for smaller entities, such as small businesses or individuals, who do not have the same financial resources as a large corporation. It helps ensure that they have access to legal representation and can adequately defend themselves against legal claims. However, First Dollar Defense policies may have limitations, such as exclusions for certain types of claims, so it is important to carefully review the policy before purchasing it. Additionally, the cost of the policy may be higher than that of a traditional insurance policy, as the insurer is taking on more immediate risk by paying legal fees from the outset. Overall, First Dollar Defense can be a useful insurance product for those who want to protect themselves against potential legal claims while also minimizing the financial burden of legal defense.