How is the amount of non-performance coverage calculated?
The amount of coverage is based on the number of berths on the cruise line’s largest vessel and the formula contained in the statute. The formula is as follows: (a) $20,000 for each passenger accommodation up to and including 500, plus (b) $15,000 for each passenger accommodation between 501 and 1,000, plus (c) $10,000 for each passenger accommodation between 1,001 and 1,500, plus (d) $5,000 for each passenger accommodation in excess of 1,500. For example, if we apply the formula to a vessel of 1,200 berths, coverage is calculated as follows: First 500 berths @ $20,000 = $10,000,000 Next 500 berths @ $15,000 = 7,500,000 Next 200 berths @ $10,000 = 2,000,000 Total required coverage = $19,500,000 Regulations regarding coverage for casualty liability refer to passengers and other persons. Who are “other persons.” Other persons include, but are not limited to, visitors, crew, and temporary workers aboard ship.
