Wordings Library
Construction
Clause explained
DSU / ALOP Conditions
Delay in Start-Up / Advance Loss of Profits covers agreed financial loss from project delay following insured physical damage.
Meaning
Delay in Start-Up / Advance Loss of Profits covers agreed financial loss from project delay following insured physical damage.
Why insurers use it
To connect time-element loss to an insured project-damage trigger and a defined critical path.
Effect on coverage
Delay without insured physical damage is generally outside standard cover; time excess, indemnity period, and dependencies matter.
Illustrative example
Insured turbine damage delays commercial operation by four months.
Claim consequence
Recovery depends on the actual critical-path delay, saved costs, mitigation, forecast revenue, and policy trigger.
What the insured should negotiate or check
Check scheduled completion, critical path, insured standing charges/profit, time excess, indemnity period, suppliers, and testing.