On December 12, 2018, the Government of Canada announced new regulations under the Marine Liability Act, requiring all commercial and public purpose ships to carry a minimum of $250,000 liability insurance for every passenger on board. The new regulations are in effect as of January 11, 2019.
The purpose of these new regulations is two-fold. In the event of a marine accident:
- passengers and their families receive fair compensation for injuries or fatalities
- ship operators are protected from devastating financial losses
While most ship owners and operators already carry this level of insurance, it is now a legal requirement. Those without liability insurance have until March 12, 2019 to comply. Following March 12, vessel operators caught without the minimum required liability insurance risk having their vessels detained and fines up to $100,000.
There are a number of exemptions. See the Government of Canada’s Ship Safety Bulletin at tc.gc.ca/eng/marinesafety/bulletins-2018-13-eng.htm for further details.
For more information and resources on insurance and risk management, please contact a CapriCMW Risk Advisor.
