Delay in Start-Up (DSU) insurance, also known as Advance Business Interruption or Advance Loss of Profits insurance, protects project owners from financial losses caused by delays in project completion due to insured physical damage. This coverage is crucial for mitigating the financial impact of unexpected setbacks, such as damage from fire, natural disasters, or other construction-related incidents that delay operations.
DSU insurance is increasingly in demand, particularly as project lenders require it as a condition for financing. The insured parties typically include project owners, sponsors, and lenders—those most affected by financial losses from delays. In some cases, contractors may also be included, particularly under concession contracts. By securing DSU insurance, businesses can ensure financial stability and safeguard against revenue losses caused by unforeseen project delays.
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