Delayed Start up or Advanced Loss of Profits

The changed industrial scenario has led to the growing demand for insurance of loss of anticipated revenue, due to delays in commissioning of projects. It is thus vital for mega projects with substantial financial involvement to have advance loss of profits cover along with cover for project during its erection.

Delayed Start up or Advanced Loss of Profits policy covers monetary losses due to delayed commissioning of the project as a result of a loss during construction / erection which is covered under a project insurance policy (EAR/CAR). The policy is operational during the whole or part of the preparatory period of a new venture. In case of any accident or damage during this period which delays commencement of trading beyond the starting date, this policy covers loss of trading income, loan interest and other standing charges and increase in expenses incurred in reducing or avoiding the delay in startup.