What is the Federal Maritime Commission’s Passenger Vessel Operator Certification Program (“PVO Program”)?
The Office of Passenger Vessels and Information Processing at The Federal Maritime Commission (“Commission”) issues Certificates (Performance) and Certificates (Casualty) to cruise lines which have provided proof of financial responsibility in an amount sufficient to reimburse passengers for claims against the cruise line for failure to perform cruises, and claims to cover death or injury to passengers and other persons. What is meant by “proof of financial responsibility?” Proof of financial responsibility is the coverage provided by the cruise line to demonstrate that it can reimburse passengers for the water portion of fares paid by passengers should the cruise line fail to perform, or provide coverage for death or injury of passengers or other persons in the amounts required by law. In most instances, coverage is shown through the filing of a surety bond, guaranty or similar financial instrument. Separate coverage is filed for non-performance and casualty.
