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ADVANCE LOSS OF PROFITS INSURANCE START UP
What is ALOP/DSU

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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 insured’s 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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