Delay in start-up
Project cover for the financial consequences of late equipment.
Definition
A separate class bought alongside marine cargo cover on construction and infrastructure projects. Where insured damage to a critical item delays the completion of the project, delay in start-up — also called advance loss of profits — responds to the resulting loss of revenue or increased financing cost. It is triggered by physical damage under the underlying cargo cover, not by delay on its own.
Why it decides money
It is the only common answer to the delay exclusion, and it exists because on a project the late arrival of one item can cost far more than the item.
Related terms
- Delay exclusion
- Loss caused by delay is excluded, even where an insured peril caused the delay.
- Marine warranty surveyor
- Independent approval of a heavy-lift or project operation before it happens.
More in what is covered
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