Beginning in 1970, federal water regulations became very strict strict, placing all blame for spills on vessels. For this reason, some insurance companies stepped up to the challenge that boat owners faced by creating a new type of policy to cover vessel pollution liability. Discover what this type of insurance covers and whether you need it.
Who Needs Coverage
If you own a boat, you probably already realize that you need liability insurance. However, if you are a demise charterer or vessel operator, you may be unaware that you also are liable for pollutants released when the ship is under your watch.
What Is Covered
No two policies are exactly the same, but you can expect vessel pollution liability to cover the following costs:
- Cleanup of spills
- Repair of damage to natural resources
- Court costs and legal representation fees
- Fines and penalties
- Certificate of financial responsibility guaranty
- Blue card guaranty
Laws assigning blame for pollutants spilled into the water have been around for a long time, and will most likely continue into the foreseeable future. However, many regulations concerning the boating industry are constantly changing, and it can be difficult to keep up. Your insurance agent can help you navigate these waters and customize a policy that suits your needs.