Hello
I am a scientist who just purchased a boat to support research diving projects. For liability protection, my university wants me to have commercial insurance. I don't mind the extra liability protection, too. So, I started an LLC, bought and registered my boat under the business, and obtained commercial insurance. The boat will largely be used by myself, staff, and students - none of whom are paying passengers. Costs to run the boat are out of my pocket or through grants to pay for gas etc. My question is: do I need a licensed CG Captain to run the boat when my passengers are not paying customers? The boat is a 30 footer with twin outboards, less than 5 metric tons. I understand that if I run the boat with paying customers then I absolutely need a licensed CG Captain/Dive Master at the helm. Diving is conducted under university guidelines that are part of AAUS (American Academy of Underwater Sciences). Thank you. S Miller
The answer is "It depends". First of all, I would contact the nearest Coast Guard Vessel Inspections branch. They don't know everything, but they will help you find the Coast Guard's answers. Do not ask the guys down at the local Coast Guard station. Those questions aren't their job, but in the spirit of customer service, they will be happy to give you an answer. You need the right answer. Do not expect a fast answer, and it's always best to put your questions in writing. The Coast Guard has 30 days to respond to your e-mail. Second, a commercial insurer will require a licensed captain for the insurance to be valid. The insurance company assumes that a Captain has basic knowledge that we aren't born with, including Rules of the Road and how to read a chart, how to use a radio, etc. By the way, have you looked into vessel insurance with a in-water liability policy? I spend about $1,000 per year per diver for mine. The hull, P&I, oil spill, grounding, alcohol service, terrorism, Jones Act, etc. coverages are cheap compared to in-water liability.
Most grant writing institutions will require something mealy mouthed like "Must be performed in accordance with all applicable local, state, and federal laws, regulations, ....". Some, specifically marine science grants, will specifically require insurance and a Captain. Without knowing your granting authority, it's hard to make a call. I do a fair amount of work for NOAA, and also National Park Service. For NOAA, I have to follow the Draft NOAA charter vessel policy. For NPS, I have to be alive, and that isn't hard and fast.
Metric tons means very little when it comes to boats, except for trailering. The number you are looking for is gross tons, and below 5 gross tons you may not document your vessel. This is good and bad. It's way easier to get commercial insurance on a documented vessel, but the restrictions for documented vessels are onerous. I personally have never seen a research vessel less than 5 gross except the self insured kind owned by a University. I think this will be a tough battle for you.
Short answer is, I do not believe that the law will require you to be licensed for this gig, since your riders will not meet the legal definition of "passenger", which the Coast Guard re-defined this year to make the distinction clearer. I further don't believe you will be able to obtain commercial vessel insurance and will have a hard time getting grants without said license.