Advance Loss of Profit
Principal’s advance loss of profits insurance, also known as advance loss of profits (ALOP) or delay in start-up insurance, indemnifies the actual loss of gross profit sustained as a result of delayed commencement of business operation caused by an accident covered under the contractors’ all risks policy or the erection all risks policy.
Loss of Gross Profits.
Coverage is suitable for project contractors; project equipment suppliers; project investors and operators This 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.
- Commencement/completion date
- Period of construction
- Period of Maintenance
- Simplified process flow diagrams
- Annual Sum insured
- Financial data
- Back up plans