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Delay in start up insurance
Chubb Commercial Insurance
Chubb provides coverage for delay in start up insurance (DSU); this provides insurance to the employer for anticipated future
earnings of a future business for projects which are under construction.
DSU is provided in conjunction with contractors all risks or erection all risks, material damage insurance.
The DSU policy is fully flexible and can be written and provided in a variety of ways to reflect the actual type of construction
project and what the anticipated future earnings correspond to, such as:
- Loss of gross profit
- Loss of revenue or rent
- Debt servicing costs
- Increase cost of working
Examples of this would be:
- Safeguarding the profitability of a new manufacturing plant or production unit
- Protecting the potential loss of revenue from a commercial or residential development
- Covering the additional loan servicing costs resulting from a delay in start up of a commercial concern
Even though there is no legal requirement to obtain DSU insurance, in recent years it has been very much in demand following
a shift from governmental funding programmes to Private Finance Initiatives (PFI) in respect of projects undertaken.
DSU cover is of particular interest to the banks and financiers who put up funds and loans for major projects.