Passenger vessel operators have many options when it comes to risk management for their operations. While many of these are focused on board the vessel, one that is often overlooked occurs before a passenger ever steps aboard the boat. By incorporating ticket terms and conditions onto the passage fare that your passengers are purchasing, you can add an additional layer of risk management.

By adding terms and conditions at the time of a ticket purchase you help limit your vessel’s liability for certain risks such as injury to passengers. You may not be able to have all liability waived; you will still need to comply with maritime law. But informing your passengers that by purchasing the passage ticket they accept and understand that travel at sea can be potentially dangerous could be one additional defense for you should a claim become messy.

Another benefit could be controlling time limits and specify legal jurisdiction. Being able to manage potential litigation can minimize legal expense as well as the inconvenience of fighting a lawsuit long distance. You will be thankful you have established this should a passenger who cruised with you in Boothbay, Maine, file a claim in their hometown court in Houston.

Terms and conditions should also clearly state your refund policy should a trip have to cancel or become delayed. You can control many things on your boat, but you cannot control the weather. Including a force majeure clause that details situations where you are not liable for cancellations due to events outside of your control.

It goes without saying that you should consult a professional when preparing this. An admiralty attorney would be able to draft this document to suit the type of trip that you are running and to make sure that you are abiding by the state and federal laws that you are operating under.

Risk management comes in many forms. Proper terms and conditions on your boarding pass can be just as important as the life jackets that you keep on board. When creating a risk management program for your business, use all the options available, and use a trained professional to help develop this.

Chris Richmond is a licensed mariner and marine insurance agent with Allen Insurance and Financial. He can be reached at 800-439-4311 or [email protected]