DEMA first alerted its members to a congressional policy change that would dramatically impact the U.S. dive community back in 2022. Among other changes, Section 11503 of the 2023 National Defense Authorization Act - the Small Passenger Vessel Act (SPVA) created retroactive liability exposure (2 years) for a subset of small businesses primarily in the dive community. This broke the commercial insurance market and dramatically raised annual insurance premiums for dive businesses. Notably, fishing vessels and cruise lines (among others) were exempted from these painful insurance hikes.
Why Does It Matter?
These changes, enacted by the 117th Congress, broke the commercial insurance market and increased business costs for dive stores and operators around the country, including those in non-coastal states. DEMA regularly hears from stores and operators about painful choices they face because of these increased costs. Sadly, DEMA knows owners and operators that had to forgo upgrades to their boats and/or equipment, lay off staff, limit staff hours, raise their prices for consumers, or even close their business. None of these decisions are easy or taken lightly, especially at a time when, “conventional water recreation” businesses, which includes scuba diving, saw 39% increases in operating costs since 2022 according to the U.S. Bureau of Economic Analysis.
DEMA is Working for You
DEMA believes in accountability when wrongful actions take place, but not at the expense of thousands of small businesses and employees who operate safely, lawfully, and responsibly every day. DEMA has worked tirelessly to educate members of Congress about the unintended impact of changes made by the 117th Congress, and we were close to striking a deal in the 118th Congress. As you know, once a Congress adjourns permanently, the legislative process has to start anew. DEMA is now educating newly elected officials serving in the 119th Congress and continues our push for a fix that holds bad actors accountable but does not unfairly punish the entire scuba diving community.
The DIVE BOAT Act
In consultation with insurance actuaries, DEMA developed proposed language to help fix the broken insurance markets for those operating safely and lawfully. The proposed changes honor the spirit in which the SPVA was enacted by holding overnight vessels to a higher standard. If enacted, the DIVE BOAT Act would.
- Adjust the timeline for filing a claim against overnight vessels to better align with how business insurance premiums are assessed.
- Revert day boats back to the same standard as all other passenger vessel operators carved out of the SPVA (e.g., sport fishing, cruise lines, tow boats etc.)
WE NEED YOUR HELP!
The new Congress intends to update the “US Coast Guard Reauthorization” in 2025 because the last Congress did not finish its work. There is still an opportunity to add the DIVE BOAT Act to this legislation, but we will be much more successful if Congress hears from YOU! Now that there are NEW leaders in Washington, D.C. – we need YOUR HELP once again!
You can show your support for the DIVE BOAT Act and encourage your representatives to do the same.
Click here to use our advocacy software to connect with your federal elected officials and quickly send an email (with an option to use a new prewritten message for the new Congress).
If we continue to work as a community, we CAN minimize further losses and secure much needed insurance premium relief for the small businesses on which divers rely.
These reports and infographics provide critical data on the demographics and psychographics of divers, including their geographic distribution, income levels, home ownership and value, education, family life stages, and other behavioral patterns that influence their recreational activities. Understanding your customer has never been more essential, and these insights are designed to help dive businesses tailor their marketing, sales, and engagement strategies for maximum impact.