Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 3214 SEPTEMBER 2016 • FOGHORN QUALITY FERRIES FROM THE VIGOR/KVICHAK TEAM 144-CAR FERRY KVICHAK 400 PASSENGER-ONLY-FERRY 206.545.8485 KVICHAK.COM SALES@KVICHAK.COM 1.855.VIGOR99 VIGOR.NET MARINESALES@VIGOR.NET mariner or the vessel operator. Failure to report a reportable marine incident (or, filing a late report) is treated by the Coast Guard as misconduct, an offense chargeable against a mariner’s license or credential. Misconduct is defined by the regulations as failure to comply with law or regulation. A first-time charge of misconduct, if proven, may result in a one- to three-month license or credential suspension, or a letter of warning. If the mariner has had one or more other chargeable offenses proven against his or her license or creden- tial in the last 10 years, the suspension could be greater, possibly up to six to 12 months, or higher. (See 46 CFR sec. 5.27 and 5.569.) Failure to report can also subject the “owner, charterer, managing operator, agent, master or in- dividual in charge of a vessel” to a civil penalty of up to $$37,561 (see 46 USC sec. 6103, as adjusted by regulation published in the Federal Register of July 1, 2016). Civil penalties are more rare than license actions, and they tend to be limited to more egregious conduct with severe consequences, such as serious personal injury or death, or extensive environmental damage. Nonetheless, it is important to note that the owner or operator itself can be subjected to such penalties for a failure to report. Ensuring proper compliance with Coast Guard reporting requirements is, for a vessel operator, a critical component of best practices, as well economy of operations. A license or credential suspension imposed against a trained and skilled mariner repre- sents, for a vessel operator, an un- necessary loss of time and money in terms of training, and administra- tive and personnel disruption. Coast Guard civil penalties represent the threat of direct out-of-pocket financial loss, and possible indirect losses as well from higher insurance premiums. And many times following a casualty, the Coast Guard will impose upon a mariner, or a vessel operator, addi- tional training or casualty handling procedures, or training courses, that also represent more unanticipated costs of operation. Proper preventative training, for all marine employees, in the full scope of Coast Guard reporting requirements has become a critical part of safe and efficient vessel operation. But because accidents will, and do, happen, safety and efficiency also require adequate and properly tailored insurance coverage. P & I coverage (protection and indemnity coverage) may provide some protection for a vessel owner/operator against the im- position of civil penalties. In addition, mariners themselves or their marine employers can obtain license insurance to cover the costs of defending a mariner against Coast Guard charges, and to ensure that the mariner is vig- orously defended, and that sanctions are reasonable and tailored to address the problem. Thorough preventa- tive training, comprehensive internal reporting procedures, and proper and adequate insurance coverage are all equally essential elements for the safe and economical operation of passenger vessels in today’s demanding and often complex operating environment. n LEGAL