If a marine incident or an accident, including pollution happens in Canadian waters, the person or company responsible must pay for the damage. The people and communities affected by an accident or spill can ask for compensation. Claims could include lost income from fishing and tourism, loss of subsistence fishing and harvesting, property damage, clean-up costs and steps taken to prevent more damage.
On this page
- What’s covered
- What shipowners must pay
- Limits of liability for claims
- Information for exporters and receivers
What’s covered
Oil spills
Polluters must pay for any damage caused by oil, no matter what kind of vessel caused the spill, even if it was an accident. Canada’s rules follow international agreements that make sure the polluter pays. Learn more about oil spills.
Pollutants
If a vessel spills a harmful substance (not just oil), such as ammonia or ammonium nitrate or plastic pellets, the polluter is responsible for the cost of the clean-up.
Wrecks
Shipowners must pay to remove a wreck if it blocks safe navigation or harms the environment. Learn more about removing wrecks.
Passenger accidents
Shipowners are responsible for injuries to passengers and for lost or damaged luggage due to their fault or neglect. Learn more about insurance for passenger vessels.
What shipowners must pay
Under the Marine Liability Act and the Wrecked, Abandoned or Hazardous Vessels Act, shipowners are legally required to pay for the damage they cause. This helps make sure that victims can get compensation.
Canada also follows several international regulations set by the International Maritime Organization. These agreements set global rules for shipowner liability and create international funds to provide extra compensation beyond what the shipowner must pay.
To make sure that they can cover these costs, shipowners must have insurance based on the size of their ship and what it does.
Canada also has the Ship-source Oil Pollution Fund (Ship Fund) which can pay compensation if the shipowner and international funds don’t cover all the losses.
Limits of liability for claims
In most cases, shipowners can limit how much money they must pay after an incident. This helps keep costs predictable for shipowners and insurers, which supports trade and the economy.
Learn more about limitation of liability for maritime claims
Information for exporters and receivers
If you export or receive oil or other dangerous goods by sea over certain thresholds, you must file an annual information return. These reports help keep Canada’s compensation funds ready to pay for damages after a spill.
This reporting is required by the Marine Liability Act. It helps make sure that the people who ship cargo also help pay into the system through levies.
Learn about annual information return reports or the Hazardous and Noxious Substances (HNS) and Oil Reporting System.