When you operate a business that involves transporting oil or other volatile materials across bodies of water, you need to focus on the regulations surrounding your industry. Over the years, various acts have been put into place to protect the ocean and other water sources from spills and other dangers. To remain compliant, you may need to obtain a Certificate of Financial Responsibility. So what is COFR guaranty? Essentially, it helps you show your financial responsibility in the event of a problem during transportation.
As reported on https://www.wqis.com/, not all seafaring vessels need to have this certificate. Essentially, this regulation applies to any vessels involved in transporting oil as cargo or for fuel. Additional hazardous materials Vessels over 300 tons also need a COFR, regardless of whether or not they are carrying oil or other hazardous materials. Vessels exempt from the need for a financial guarantee include:
Public vessels that don’t carry oil or hazardous materials
To receive the proper certificate for your business, you need to take the time to apply using the CG-5585 application. Look over the document and make sure you have all the required paperwork before you submit to ensure you are prepared.
There are many considerations to take when it comes to protecting your company. Look into how the right guaranty proves your financial responsibility and see whether or not your vehicles fall under these strict regulations.