Which of the following is a consequence of not having a valid Certificate of Compliance?

A valid Certificate of Compliance is essential for a vessel to operate legally, particularly in compliance with environmental and safety regulations. When a vessel lacks this certificate, the primary risk is enforcement action, which can include fines imposed by regulatory authorities. Additionally, the absence of this certification often leads to the vessel being detained until the situation is rectified, which can significantly disrupt operations and lead to financial loss.

The other consequences listed, such as increased insurance coverage, recognition in safety awards, or eligibility for government funding, are not directly correlated with the lack of a Certificate of Compliance. In fact, the opposite is often true: insurers may view vessels without compliance certificates as higher risk, potentially leading to higher premiums or ineligibility for coverage. Similarly, without meeting regulatory standards, a vessel would not be considered for safety awards or government funding opportunities.