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ALOP/DSU Insurance Guide

ALOP or Delay in Start Up insurance indemnifies against actual loss of gross profits due to delayed commencement of a business or project caused by an accident covered under a Contractors All Risks or Erection All Risks policy. It compensates for continuing expenses and lost net profits during the indemnity period. The sum insured is typically the gross profits expected in a 12 month period. Major extensions include inland transit, commissioning over 3 months, and failure of utilities. Exclusions are losses covered elsewhere, delays from defects or theft, and there is typically a 4 week time excess per construction year.

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508 views2 pages

ALOP/DSU Insurance Guide

ALOP or Delay in Start Up insurance indemnifies against actual loss of gross profits due to delayed commencement of a business or project caused by an accident covered under a Contractors All Risks or Erection All Risks policy. It compensates for continuing expenses and lost net profits during the indemnity period. The sum insured is typically the gross profits expected in a 12 month period. Major extensions include inland transit, commissioning over 3 months, and failure of utilities. Exclusions are losses covered elsewhere, delays from defects or theft, and there is typically a 4 week time excess per construction year.

Uploaded by

HITESH
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
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ADVANCE LOSS OF PROFITS INSURANCE START UP


What is ALOP/DSU

DELAY IN

ALOP or DSU indemnifies the actual loss of gross profit sustained as a result of delayed commencement of business operation (project) caused by an accident covered under the CAR or EAR policy. ALOP insurance compensates for standing charges (continuing business expenses) including the salaries and wages paid to employees plus the net profit, the increase in cost of working, i.e. the additional expenditure necessarily and reasonably incurred for avoiding or diminishing a reduction in turnover, revenue or rentals. The ALOP cover for CAR risks is of interest for all kinds of buildings and civil works where rentals or other revenue is achieved. This cover is advisable for EAR risks,

Why ALOP
Because an interruption or delay in project completion can wipe all the earnings of a contractor, principle etc

Deciding the Sum Insured


The sum insured is for all normal cases the gross profit obtained from the turnover of goods produced or handled, services rendered or revenue or rentals achieved in the course of the insureds business for a period of 12 months (i.e. normally for the business year). The period for which the insurance will indemnify losses is defined as the indemnity period which is determined by the insured depending upon the replacement period for the contract works, building or plant insured. Major Extensions Inland Transit. Commissioning and Testing Exceeding 3 Months. Manufacturers Risk for Prototypes. Suppliers extensions: named perils only and without manufacturers risk at suppliers premises. CPM: named key machines only. Failure of electricity, water or gas supply etc. Denial of access. Damage to access roads if not included in sum insured. Existing property

Major Exclusions
Time excess Loss or damage covered under section-I by way of endorsements unless specifically agreed Delay in erection work or testing due to : Loss/damage to plant equipments whilst in transit AOG perils unless specifically agreed Loss/damage due to burglary, theft, pilferage, inventory losses
For More Details Please Contact
Nasco Karaoglan Qatar L.L.C | Insurance Brokers
Tatweer Tower - West Bay, P. O. Box 22761, Doha, Qatar Office: + 974 44 91 42 58 / Fax: + 974 44 91 42 59

www.nascoqatar.com

-------------------------------------------------------------------------------------------------------------------------Deductibles Instead of a monetary deductible this type of insurance is usually subject to a time excess of approx. 4 weeks per year of construction/erection period. The equivalent of the number of average daily values of the loss corresponding to the time excess is borne by the insured.

For More Details Please Contact


Nasco Karaoglan Qatar L.L.C | Insurance Brokers
Tatweer Tower - West Bay, P. O. Box 22761, Doha, Qatar Office: + 974 44 91 42 58 / Fax: + 974 44 91 42 59

www.nascoqatar.com

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