Compare and Buy Advance Loss of Profit Insurance
The policy pays for the actual loss of gross profit incurred during the period of delay, commencing from the scheduled date of commencement of commercial operation up to the actual date of commencement of commercial operation subject to a time excess and indemnity period selected. The delay however should have occurred due to a claim payable under marine -cum- erection policy, storage-cum -erection policy or contractor's all risk policy.
A Marine-cum-Erection or Contractor's All Risk policy covers only physical damage to property which at best covers the expenses incurred for repairing or replacing the damaged property.
The Advance Loss of Profit Insurance Policy covers
- Loss of Gross Profit = Net Profit + Standing Charges OR
- Loss of Gross Earnings = Turnover - Specified Working Expenses OR
- Fixed Operation & Management Costs such as Debt Service Charges, Increased Cost of Working, Special Expenses e.g. penalties
Who can take the policy?
The policy is taken by the Principal as he stands to lose in case of any delay in the commissioning of the project.
- Unless also expressly covered in the Delay in Start Up Insurance Loss or damage:
- covered under underlying Storage Cum Erection Insurance by way of endorsement (if any).
- earthquake, volcanic eruption or tsunami
- -loss of or damage to fuel or feedstock or any materials necessary for the business insured, unless also covered in the underlying Storage Cum Erection Insurance
- loss of or damage to items of a prototype nature,
- Redesigning, altering, adding to or improving the property insured or rectifying defects or faults;
- Non-availability of funds;
- Any fines or damages for breach of contract, for late or non-completion of orders or for penalties of whatever nature
- Loss or damage to surrounding property, construction plant and machinery
- Loss resulting from suspension, lapse or cancellation of a lease, license, order, contract or agreement