Advance Loss of Profits Insurance (ALOP)

This policy helps you stay protected against all losses in anticipated revenue resulting from damages during construction, erection or testing & commissioning phase of project, and more. The Advanced Loss of Profits( ALOP ) Insurance is designed for Principals, and it is usually concurrent with Material Damage (MD) project insurance i.e EAR or CAR.

Features

  • Covers loss of gross profits due to reduction in turnover/output on account of interruption(s) caused by physical damage during the construction phase due to delayed start up.
  • The sum insured should cover anticipated gross profits for the selected indemnity period or the projected maximum interruption period.
  • The policy premium varies with type of project and its duration, the indemnity period and the gross profit.
  • The policy is subject to a time excess (expressed as number of days).

Note: ALOP insurance covers only insurable delays caused by unforeseen events, and result in physical damages. Uninsurable delays (e.g., non-availability of funds, restrictions by public authorities, and cancellation/suspension of lease or licence) are not under this coverage.

Claim Process

1

Review the claim

2

Contact the relevant party

3

Request a status update

4

Express your concerns

5

Seek a point of escalation

6

Follow up regularly

7

Consider alternative dispute resolution

8

Seek legal advice if necessary

9

Thank You

Note: The claims process can vary depending on the specific circumstances and the policies.

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