Financial Guaranty

The online application for a guaranty can be found in the applications section, or by clicking here.

A financial guaranty is required as evidence of Financial Responsibility under OPA90 for vessels over 300GT trading to the USA. The provision of this guaranty is SIGCo's core business.

Guaranty Application Process

  1. Contact SIGCo and provide the requested information in order for SIGCo to issue a premium indication. This information will include:
     
    • Vessel Name
    • Gross Tonnage
    • Year Built
    • Vessel Type
    • Construction
    • Fleet Name (and SIGCo fleet reference if known)

  2. Confirm acceptance of premium terms to SIGCo, and provide the COFR operator name. SIGCo will then issue an agreement.
     
  3. Provide other required documents (P & I Club Letters of Entry / Undertaking, Tonnage Certificate)
     
  4. Return the signed quotation agreement together with the specified premium.

COFR guaranties are provided at a fixed premium cost with vessels rated according to type. Tankers carrying either persistent or non-persistent cargoes as defined in the legislation are rated on a per voyage basis over the period of the guaranty. Dry cargo vessels are given a fixed premium cost for the period irrespective of voyages undertaken.

Tanker voyages will thus be billed throughout the year based on voyage declarations in the same way that the P&I Clubs adjust tanker premiums. SIGCo uses the same quarterly periods as the P&I Clubs for adjustment purposes, and sending copies of the P&I Club declaration to SIGCo will satisfy this requirement.

SIGCo will also provide a guaranty for vessels on a "service fee" basis where it is not anticipated that the vessel will enter US waters but the shipowner does not wish the COFR to lapse. This administrative procedure is undertaken by SIGCo at a nominal cost with the balance of the full premium payable if the vessel does in fact enter US waters during the period of the cover.