When you own marine vessels, shipyard businesses, marinas, cargo and other maritime assets, it’s incumbent upon you to make sure that you have the right insurance products to protect you from claims or losses. You might think you’re fully covered with products that address property damage and work operations, but what about marine pollution from one of your assets? Do you have adequate funds to cover cleanup costs from spills or leaks?
Understanding Your Liability
The Certificate of Financial Responsibility (COFR) program was created to assign responsibility for cleaning up pollution from vessels used to transport oil and other chemical-based products in U.S. waters. You must demonstrate an ability to pay for damages in accordance with the Oil Pollution Act to be issued a COFR. Failure to comply with the requirements of this program include certain penalties:
- Daily fines of up to $32,500
- Vessel detainment, seizure or forfeiture
- Barred from entry into U.S. ports
The cost effects from COFR issues can be significant enough to bring harm to your business or bottom line.
Choosing an Experienced Insurer
Marine pollution insurance is a very specific type of coverage. It’s important to work with an insurance provider that understands laws and regulations and can offer the type of products that cover you properly. The right provider will come up with a policy that is tailored to the way you work.