All Posts tagged Financial Responsibility

Do You Need a Certificate of Financial Responsibility

Do You Need a Certificate of Financial Responsibility

The impact of an oil spill can be devastating. It can completely ravage an ecosystem and cost billions of dollars to clean. Given the severity of oil spills, the U.S. government has regulations to protect the environment.

One of the regulations to ensure that vessels can pay the fines, penalties and damage after an oil spill is that all vessels over 300 gross tons have to have a Certificate of Financial Responsibility.

Why You Need a COFR

If you are a vessel over the weight limit and if you operate in the Exclusive Economic Zone or U.S. waters, then you have to have a COFR. Without one, you could face serious fines. For instance, you could be detained, fined up to $30,000 daily and more. In some cases, you may even have to give up your vessel.

How to Get a COFR

If you need  COFR, then you can always apply for one online. You simply sign onto the U.S. Coast Guard’s website to find the application. You can complete the whole process electronically. You can even apply for supplemental COFR and make online payments. There is no need for paper copies.

If you have a ship that is over 300 gross tons and that operates within the EEZ or U.S. waters, then you need the COFR. While the COFR protects the environment, it also protects your vessel and your assets.

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Why You Need a Certificate of Financial Responsibility

Why You Need a Certificate of Financial Responsibility

Why You Need a Certificate of Financial Responsibility

There are a number of moving parts involved with running a business that involves seafaring vessels. In order for you to stay successful, you need to take time to consider the various rules and regulations governing your specific type of work. Obtaining a COFR, for example, might be a vital step for your business to make in the near future. Also known as a Certificate of Financial Responsibility, this certificate is a must for any business that fits the criteria.

Who Needs This Certification?

According to the experts at https://www.wqis.com, only certain ships need to consider obtaining a Certificate of Financial Responsibility. Essentially, any boat weighing over 300 tons and traveling US waters absolutely needs this type of certification. If your vessels are under 300 tons, they will still need the certificate if they are used to ship oil in the Exclusive Economic Zone of the United States. Exceptions to this rule include:

  • Self-propelled barges
  • Small ships that don’t carry oil for fuel or cargo
  • Ships that carry no hazardous substances for fuel or cargo

Meeting the Standards

Should your business meet the standards set forth by the United States government, you absolutely need to get started on filling out an application for a Certificate of Financial Responsibility. The sooner you get started, the easier it will be for you to protect your business against any unforeseen events.

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