If your business operates vessels in the United States, you may be required to obtain a COFR, or Certificate of Financial Responsibility, to prove that you are able to pay for expenses in case of an oil spill. While it might seem like an additional hassle, it’s important to get comprehensive COFR insurance coverage to protect your company.
You May Face Penalties for Noncompliance
It’s important to understand that without a COFR if you’re required to have one, you may face several harsh penalties. Some of the penalties you may be risking for noncompliance include:
- Being required to forfeit your vessel
- Receiving a fine of up to $30,000 per day
- Being denied entry at your destination
- Getting detained
In order to avoid these penalties, proper COFR coverage is essential. Thankfully, with online applications available, the process to get a COFR is straightforward.
Check Your Requirements
While not all vessels are required to have a COFR, some are. For example, if you operate a vessel of more than 300 gross tons within the United States’ Exclusive Economic Zone waters, you are required to have one. On the other hand, there are also some exceptions. For instance, public vessels not carrying oil as cargo or fuel may not be subject to this requirement.
When it comes to protecting your company and complying with relevant regulations, adequate COFR insurance coverage is key. Keep these essential facts in mind and you can find the right policy for your business.