What is the purpose of a Certificate of Financial Responsibility (COFR)?

The Certificate of Financial Responsibility (COFR) serves to demonstrate a vessel owner or operator's financial ability to cover potential liabilities arising from oil spills into navigable waters. This requirement is crucial for ensuring that funds are available for cleanup and damages should an incident occur, thus protecting both the environment and public interest. The COFR acts as a financial assurance mechanism, ensuring that the responsible parties can manage the costs associated with oil spill incidents, which can be substantial. By having this certificate, vessel operators convey accountability and compliance with regulations designed to prevent environmental harm, aligning with broader efforts to promote safety and responsibility in marine operations.