Marine Delay in Start-up Insurance Policy — also known internationally as Advance Loss of Profits (ALOP) insurance — protects the financial interests of project owners and lenders when physical loss or damage to project cargo, machinery, or the carrying vessel pushes back a major project's start-up date. It doesn't insure the cargo itself — that's your separate marine cargo policy's job — it insures the gross profit, revenue, or debt-service obligations you lose for every day the project's commercial operations are delayed.
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"The Marine DSU is designed to protect and indemnify the principal or owner. The policy indemnifies for the actual loss of Gross Profit if start-up of the project is delayed beyond the schedule date." This is the most sophisticated, project-finance-oriented product in the insurer's marine range — built for major infrastructure and industrial projects, not routine shipments.
Unlike every cargo product covered elsewhere in this series, Marine DSU doesn't pay out for damaged goods — it pays out for the financial consequences of the delay that damage causes, measured in lost gross profit, revenue, or debt-service capacity.
Fundamentally Different Insured InterestA DSU claim can only proceed where there's an admissible material damage claim under the underlying project cargo policy first — the same dependency pattern seen in the insurer's Duty and Increased Value policies, but applied to a far larger financial exposure.
Dependency"For many projects cover of this type is mandated by the project funders or lenders, to ensure that expected profits and debt repayments are protected in the event of delays" — confirmed, international standard sources. This isn't always a discretionary purchase for project owners.
Frequently Mandatory"The normal calculation of the sum insured adds the fixed costs to the net profit, meaning gross profit." A meaningfully different, and more complex, valuation exercise than insuring physical assets.
Mechanic"This is the period of the loss during which the delay is self insured. The deductible is usually expressed as a number of days and will be applied to the aggregated delay." A time-based deductible, not a monetary one.
Industry StandardKnown globally as Delay in Start-Up (DSU) or Advance Loss of Profits (ALOP) insurance, this product follows broadly consistent principles across major reinsurers and insurers worldwide (, and others) — the insurer's Marine DSU operates within this same established framework.
Global Standard ProductProbitas Insurance Brokers· takemyinsurance.com
For new plant/project
Covered under cargo policy
Months of project slippage
Revenue, profit, debt service lost
The financial loss from delay
Probitas Insurance Brokers· takemyinsurance.com
| Criterion | Marine DSU Terms |
|---|---|
| Primary insured | The principal or project owner — designed specifically to protect and indemnify this party |
| Other interested parties | Banks and lenders can also be insured alongside site owners; their interest is typically in debt-service protection |
| Project types | Major infrastructure and industrial construction projects requiring shipment of specialised project cargo/equipment |
| Pre-condition | Must have, or be arranging, an underlying marine cargo policy covering the project cargo/equipment for physical loss or damage |
| Financial interest required | Must have a genuine financial interest in the loss of profit/revenue should the project be delayed by an indemnifiable physical loss |
Probitas Insurance Brokers· takemyinsurance.com
| Element | Confirmed Mechanic |
|---|---|
| Insurance period | Coincides with the project works and testing period, terminating with the commencement of the operational phase |
| Trigger | Only triggered once the project is delayed beyond the original Scheduled Opening Date, due to an indemnifiable loss under the material damage (cargo) policy |
| Sum insured basis | Gross profit — typically calculated as fixed costs plus net profit (or, equivalently, turnover less variable costs) |
| Indemnity period | Commences on the day handover would have occurred but for the loss, ends when commercial operations begin (or at the agreed maximum indemnity period) |
| Deductible/waiting period | Expressed as a number of days, applied to the aggregated delay across all contributing insured events |
| Settlement basis | Actual loss sustained, not automatically the sum insured — the difference between projected and actually-achieved gross profit during the delay |
| Post-completion adjustment | Actual attainable gross profit can often only be established after the project has operated for at least 12 months — indemnity may need adjustment after this period |
"DSU coverage is often considered complicated, and more often than not, there are inaccuracies in what the sum insured should comprise of." Project owners commonly under-build their sum insured calculation by neglecting that fixed costs and debt-service obligations evolve over a project's life — for example, debt service may shift from interest-only to interest-plus-principal payments partway through. If your DSU sum insured calculation only reflects an early-stage cost structure, you may find yourself underinsured precisely when a delay actually occurs. This is a calculation worth doing carefully, ideally with specialist input, not as a quick estimate.
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"The policy covers loss or damage or delay in arrival of the project cargo." —, (India-market mechanic).
Core Trigger"The policy also covers loss or damage or mechanical breakdown of Hull and/or Machinery and/or equipment of vessel/carrying conveyance." —.
Trigger"The policy also covers loss or damage because of risks covered under an Air Craft All Risk Policy and War/SRCC." —. Project cargo moved by air, and war/strikes/riots/civil commotion risks, are within the trigger scope.
Trigger"Carrying conveyance being involved in General Average, Salvage or lifesaving operation." —, a further confirmed triggering event.
Trigger"Marine DSU perils follow the cover provided under ICC (A) and War/SRCC." —. The broadest standard cargo clause basis underpins the DSU trigger, not a narrower peril list.
Basis"On deck shipments or critical project items are subject to pre-shipment survey as long as there is material damage loss under cargo insurance section policy." —.
ConditionProbitas Insurance Brokers· takemyinsurance.com
These exclusions are central to understanding what Marine DSU is — and isn't. Many relate to delays NOT caused by an insured physical loss, which is consistent with DSU's core principle of only responding to delay flowing from an admissible material damage claim.
"Delay because of financial shortfall" is excluded —,.
"Delay because of requisition/restrictions by public authority" is excluded —.
"Delay because of any changes made to project cargo after damage" is excluded —.
"Delay as a consequence of destruction or damage by any public authority" is excluded —.
"Delay because of damage to contractor's equipment, materials" is excluded —.
"Delay because of cancellation of lease, Import License etc." is excluded —.
"Delay because of fines, penalties and liquidated damages" is excluded —, consistent with the international standard that "contractual penalties or liquidated damages are not covered by Delay in Start-Up insurance."
"Delay because of delay in obtaining Policy deductible" is excluded —.
International DSU/ALOP Claims Standards, Cross-Referenced with the insurer's Marine Claims Pattern
A DSU claim can only proceed where there is an indemnifiable loss under the project's material damage (cargo) policy — without this, there's no basis for a DSU claim at all.
Where multiple insured events contribute to delay, the resulting delays are aggregated into one overall delay period beyond the original scheduled start-up date.
The agreed deductible period — expressed in days — is applied to the aggregated delay; only the delay beyond this self-insured period is indemnifiable.
The claim is assessed on the principal's actual loss sustained, not automatically the full sum insured — comparing projected gross profit (had the delay not occurred) against actual gross profit achieved.
Since actual attainable gross profit may only be reliably established after roughly 12 months of operation, the indemnity figure may be revisited and adjusted once this real performance data exists.
Given the complexity and scale of Marine DSU claims, call Probitas at 022 4302 0000 well before any claim becomes necessary — understanding the insurer's exact deductible structure, sum insured basis, and documentation requirements in advance is essential for a product of this financial significance.
Marine Delay in Start-up Insurance Policy — Frequently Asked Questions
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Marine DSU is a specialist, project-specific product. Tell us about your project and our specialist will arrange a detailed consultation with the insurer's commercial risk underwriting team.
By submitting you agree to our Privacy Policy and Terms & Conditions. Marine Delay in Start-up Insurance Policy (Marine DSU)· IRDAI Licensed. Also known internationally as Advance Loss of Profits (ALOP) insurance. Designed to protect and indemnify the principal/project owner (and, where structured accordingly, lenders) for the actual loss of gross profit if a major project's start-up is delayed beyond the scheduled date, due to an admissible material damage claim under the underlying project cargo policy. Triggers include loss, damage, or delay in arrival of project cargo; mechanical breakdown of hull/machinery/equipment; risks under Air Craft All Risk and War/SRCC; and General Average/Salvage/lifesaving operations involving the carrying conveyance. Perils follow ICC (A) and War/SRCC cover. On-deck shipments/critical items subject to pre-shipment survey. Excludes delay due to financial shortfall, public authority requisition/restriction or destruction/damage, post-damage changes to project cargo, damage to contractor's equipment/materials, cancellation of lease/import license, fines/penalties/liquidated damages, and delay in obtaining the policy deductible. Sum insured typically based on gross profit (fixed costs plus net profit); deductible expressed as a number of days applied to aggregated delay; settlement based on actual loss sustained. All terms per the insurer's Marine DSU policy document; given this product's complexity and scale, sum insured calculation, deductible structure, and exact terms must be confirmed directly with Probitas/the insurer and ideally specialist advisors before purchase. Probitas Insurance Brokers Pvt. Ltd.· IRDAI Lic. No. 528.