The romantic idea of sailing on the high seas into a sunset toward new, uncharted places is irresistible to the imagination. However, boat owners have down-to-earth considerations, including proof of financial responsibility. Based on information from WQIS, for those who own and operate marine vessels, an important aspect of protecting financial interests is COFR insurance.
This type of coverage, in the simplest definition, protects holders against financial responsibility for marine pollution. While COFRs are important for company livelihood in the case of huge oil spills, for example, all vessels weighing more than 300 gross tons must have a COFR, including private vessels such as yachts. United States’ law requires it for legal operation in the country’s Exclusive Economic Zone, or EEZ, waters.
Types of Protection
This insurance has various degrees and types of protection dependent upon the nature and purpose of each vessel’s purpose.
- Pollution cleanup
- Damage to third-party property
- Criminal fines
- Civil penalties
- Damage to natural resources
There are other specialized protections available, including protection for those in the marine industry who do not go out in open waters. For example, those who build and repair ships in shipyards also need COFR insurance.
While a COFR is required for all large marine vessels, it is important to find the most comprehensive package you need from a responsible carrier. You can rest easy, because the right insurance package for your particular needs provides smooth sailing.