Adhering to the Regulations of Your Industry

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When it comes to operating a business in the modern day and age, there are all kinds of obstacles that owners need to take into consideration. If your company deals in the transportation of chemical-based products like oil across bodies of water, then it means you need to stay vigilant about whether or not your company is following the regulations put forth by governing bodies. Failing to take out the proper certifications and follow certain rules can lead your company to a mess of financial and legal complications.

What Is a COFR?

One of the more important points to understand about this journey is the Certificate of Financial Responsibility. The COFR program was created after a number of oil spills in the 1970s and 80s resulted in severe damage to the ocean and other bodies of water. When the Oil Pollution Act was put into place in 1990, it dictated that businesses involved with oil and chemical transportation must take out a certificate of this nature in order to assume responsibility upfront for any financial issues caused by the spill. The COFR:

  • Is meant for tankers, barges, and other vessels transporting oil
  • Holds your business responsible for the financial aspect of cleanup
  • Keeps businesses accountable for damages done

Understand the Industry

While there are many different factors to consider when it comes to your insurance plan, you should always stay mindful of the major regulations dictating your industry. The more you know about the Certificate of Financial Responsibility, the easier it will be to stay protected.

This post was written by , posted on April 16, 2021 Friday at 7:47 am