The United States Coast Guard is responsible for patrolling American waterways and ensuring they are free from threat. However, the types of attacks range from pirates to environmental concerns. As explained by https://www.wqis.com/, the Coast Guard requires that vessels over 300 gross tons provide proof of financial responsibility for incidents that occur with oil within U. S. waterways. While there are funds in the National Pollution Fund Centre that can be used to help with environmental cleanup, the primary goal of establishing fiscal reliability is to hold the offender accountable for their actions.
Who Needs a Certificate
In the past, owners and operators were required to carry a paper copy of the Certificate of Financial Responsibility on board the vessel. However, the Coast Guard has transitioned to an electronic filing and approval system. Most vessel operators did not have the financial resources available to meet the financial requirements for approval, so using a COFR insurance policy can help your operations get approved. The following vessels need to obtain a COFR:
- Vessels over 300 gross tons using U.S. navigable waterways
- Any vessels transshipping or lightering oil in the Exclusive Economic Zone
Failing to file for a COFR can lead to fines and impound of the vessel. The requires limits of a COFR are generally set at $300 per gross ton or the greater of $5 million.