ALERT: New Law Threatens Dive Operators & Their Employees

 As you know, in December DEMA asked you to reach out to Congress in an urgent attempt to repeal a brand-new liability requirement imposed on small vessel operators, which is already causing the cost of passenger vessel liability insurance to substantially increase, and threatening to put many operators throughout the industry out of business.

The liability requirement was included in the recently passed National Defense Authorization Act (NDAA). Lawmakers had been led to believe that Section 11503 of the NDAA was simply a “fix for the families who lost loved ones” in the tragic Conception Dive Boat fire of 2019.  But the new law goes far beyond one tragedy – it lines the pockets of trial lawyers and does nothing to make sure dive boats are operating safely.  Already, the cost of passenger vessel liability insurance has started increasing substantially, threatening the business of many dive operators.

 

There is still hope for a repeal. A brand-new Congress has been seated. We need your help to educate them about the ramifications of this new law and persuade them to repeal it.  If we come together as an industry, we CAN minimize businesses losses and prevent layoffs.

 

Why Does It Matter?

The liability requirement will have a cost impact on YOUR business.  Either directly (because you operate a small passenger vessel for diving) or indirectly (because you contract with a dive vessel for travel or instruction)—YOUR BUSINESS COSTS WILL INCREASE.

 

Dive vessel operators:
Dive vessel operators around the country started reporting exponential increases in their premiums in December 2022 as insurers cited this new law.

 

Businesses that contract with dive vessel operators:
With unfathomable increases in insurance premiums, dive vessel operators will have no choice but to increase their rates with YOU.

 

What Can You Do?

We ask that you reach out to your two US Senators and US House Representative and educate them about the true impact of the law on both your business and the industry as whole.  Below is a sample script to help guide you in your conversation with lawmakers. DEMA has also attached background information to help you better understand what is happening and why. 

Please Contact your US House Representative and Senators by calling the Capitol Switchboard at (202) 224-3121

The outline below provides the simple steps to follow:

1. Call the US Capitol Switchboard at (202) 224-3121, give the operator your state or zip code, and ask them to connect you. They can help you identify your Senators & US Representative.
   
   
2. If you are able to connect with someone on the phone, suggested talking points are below. If needed, you may also leave a voicemail.
   
   
   • Hello, my name is __________ from __________ (city / state). May I speak to the staffer who handles Coast Guard issues?
     
     
   • I’m calling today because buried in the 2023 National Defense Authorization Act that passed in December is a new liability requirement that is devastating MY small business.
     
     
   • Section 11503 was touted as a “fix for the families who lost loved ones” in the tragic Conception Dive Boat fire of 2019. But the provision goes far beyond this one tragedy.
     
     
   • Section 11503 IMPACTS ALL SMALL VESSEL operators. It DOES NOTHING to improve safety standards. It just requires me to increase liability insurance in case I get sued AFTER an accident.  

     Note: If you have a personal story about the costs you are facing, please share it – e.g., we know of a dive boat operator facing $160K insurance increase for a $2.2M operation .

   • This is just a payday for the plaintiffs’ lawyers at the expense of my small operation and our employees. I am asking you and your boss to Please REPEAL Section 11503 of the 2023 NDAA IMMEDIATELY.
     
     
   • At a time when I’m already facing increased costs because of inflation – my employees and I need Congress to repeal this ill-conceived requirement. Without a repeal, we may not be able to operate – or forced to lay off employees, which makes no one safer!
     
     
3. You can also click here and enter your zip code if you would like to email your US Representative. US Senators are listed here by state.

Additional information and background on the new law can be found here.