Canada: Liability limits set to double for owners of small vessels in Canadian waters
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Fund. If a vessel is involved in an incident in Canadian waters, victims can claim death, personal injury and property damage up to certain limits of liability. For larger vessels (300 metric tonnes and more), these limits are set by the Convention on Limitation of Liability for Maritime Claims. Limits for small vessels are set by Canada Maritime Liability Act. Under the Act, shipowners are liable up to a maximum of C $ 500,000 for property damage and C $ 1 million for loss of life or personal injury – values ââthat are not changed since 2001. Amounts are subject to periodic review and we expect them to double in 2022.
Impact. If you own, operate or manage a small vessel, your insurance premiums for incidents in Canadian waters are based on existing exposure limits. Once the limits are increased, your exposure will also increase, but your insurance may not cover the difference.
Superior Council. Review your insurance policy with your broker to make sure that when the new limits take effect, you have coverage up to the new liability limits.
The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.
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