When a project under construction suffers damage, the cost is not only the repair — it is the revenue that never arrives while the start of operations slips, and the loan instalments that fall due anyway. Delay in Start-Up insurance covers that financial gap.
What DSU / ALOP insurance is
Delay in Start-Up (DSU) insurance — also called Advance Loss of Profit (ALOP) — covers thefinancial loss caused when the commercial operation of a project is delayedbecause of insured physical damage during construction or erection. It is the business-interruption cover for the pre-operational phase of a project.
Why delays cost more than repairs
How it works
DSU is writtenalongside the underlying CAR or EAR policy. It is triggered only when anindemnifiable material-damage lossunder that policy delays the scheduled date of commercial operation. No physical-damage claim, no DSU claim.
What it covers
- loss of gross profit or anticipated revenue for the period of delay;
- standing charges and fixed costs that continue during the delay;
- interest and debt-servicing on project finance; and
- specified increased costs of working to reduce the delay.
Who needs it
Infrastructure, power, manufacturing and process plants, and large real-estate developments — particularlyproject-financed ventures, where lenders frequently require DSU/ALOP to protect debt-servicing during the build.
The parameters that matter
| Scheduled date of operation | The planned start of commercial operations — the benchmark for delay. |
| Indemnity period | The maximum period for which loss is covered. |
| Time excess | A waiting period, in days, before cover responds. |
| Gross profit / debt service | The financial basis on which the sum insured is set. |
How the sum insured is set
The sum insured reflects theestimated gross profit or debt-service obligation over the indemnity period— an estimate built from the project’s financial model, since the plant is not yet operating.
What it does not cover
Typical Exclusions
- •delays not arising from insured physical damage — design changes, funding gaps, permits, labour disputes;
- •losses flowing from uninsured or excluded perils under the CAR/EAR policy;
- •delay caused by extensions or changes to the project scope; and
- •fines and penalties.
How Aurevian helps
Aurevian helps youalign DSU with the underlying CAR/EAR wording, set a realistic indemnity period and time excess, base the sum insured on the project’s financials, and satisfy lender requirements— then manage the linked claim if a delay occurs.
“A project’s biggest financial risk is often not the damage itself — it is the revenue lost while it is repaired.”
