Imagine that you’re the owner of barge or tanker that is transporting chemicals. During the course of operations, it’s discovered that your vessel has been leaking chemicals into the water. Not only are you responsible for the cost of cleanup, but you lack the documentation proving your financial capability, so you’re fined thousands of dollars per day until the cleanup is complete! These mounting costs jeopardize your company’s future as you try to figure out how to pay for damages. You secured various types of insurance and thought you had coverage, but that is clearly not the case.
Understanding Vessel Pollution Insurance
When you’re responsible for vessels and other marine-based businesses and assets, you need vessel pollution coverage that protects you from claims and damages due to marine pollution. While you never plan to pollute waters during operations, accidents do happen. Marine vessel pollution liability insurance offers specific benefits to policyholders:
- Global coverage
- General permitting
- International claims
- Criminal defense
- Federal statutes/state law compliance
- Property Ashore
Finding a Vessel Pollution Insurer
The right insurance company has products that meet your particular needs. Look for a company that will work with you on compliance before an issue arises. Such an insurer can help you obtain a Certificate of Financial Responsibility or COFR that is registered with the U.S. Coast Guard, protecting you from non-compliance penalties.