Delay in Start-Up Insurance (December 2022)

Since the publication of 'Insurance of Revenue for Projects Under Construction' (RS254) in 2003, 'Delay in Start-up Insurance' (DSU) has evolved in the intervening years until now, with a considerable number of projects of varying scales and types being insured around the world.

DSU is intrinsically linked to Construction Insurance, Marine Cargo Insurance, and Business Interruption Insurance, each of which is a complex class of insurance, and DSU represents an even more complicated and often challenging type of insurance. Whilst considerable experience may have been gained by some market practitioners and buyers of DSU insurance over the years, it remains an area where some fundamental misconceptions, misunderstandings and gaps in knowledge continue to persist within the insurance industry.

A need for an improved in-depth understanding of DSU shows itself during the underwriting process and, even more significantly, after an incident that gives rise or might give rise to a claim. This publication provides its readers with material, explanations and guidance designed to overcome such shortcomings in understanding DSU in practice. By its structure, it is aimed at all market practitioners and their clients, regardless of their present level of experience.

Whilst many of the main principles set out in the original publication remain valid, this new one, with its simpler title, tackles some key subjects in greater depth, and a number of topics are specifically addressed for the first time.

Areas that commonly reveal a need for an enhanced understanding of DSU are dealt with more comprehensively in their dedicated chapters. Examples of these are increased cost of working, liquidated damages, defects, Marine Cargo/CAR loss sharing and extending the period of insurance. Analysis of delay is another area addressed more comprehensively, and also some specific reinsurance topics are discussed in their respective new chapters.

This publication is the work product of a compact team of hand-picked market experts representing all sides of the industry and is essential reading for those interested in or who wish to increase their knowledge of DSU (re)insurance.

Please be advised:
The Insurance Institute of London and those individuals who give lectures and/or produce papers under its auspices are mindful of the need for such material to be as complete and accurate as the occasion requires and permits. However, such material is not represented to be a full and authoritative statement of the law or practice relating to any of the issues covered and no liability for any error or omission or for any opinion expressed will be accepted by the speaker or writer, their employer or the Institute.

If you are a contributing author to this publication, to obtain a more advantageous discount, please contact Susan Phillip - susan.phillip@cii.co.uk