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The quick and dirty is that there are no approved fire protection plans for sprinklers, but they are not prohibited....@Wookie
Do USCG specs or approved fire sprinkler systems exist for small vessels? As far as that goes, are there restrictions on them due to the inherent stability issues?
In an ideal world, an approved and inspected system would earn insurance discounts like in residential structures.
For some reason I cannot post the text of 46 CFR 181.120
46 CFR § 181.120 - Equipment installed but not required.