Insurance Law Implications of Delay in Maritime Transport
Marine delay in start-up insurance
5.1 Many infrastructure and construction projects worldwide require the shipping of specialised material for use on the construction site, the delay of which can cause various types of financial losses to contractors. Delay in start-up (DSU) insurance (also known as ‘advance loss of profits insurance’) is a product offered in the market for the purpose of insuring against the risk of delay to the timely prosecution and completion of projects and is usually taken out separately from the business interruption cover. The subject-matter insured under a marine delay in start-up policy is the financial losses caused by delay to the commencement of a project and not equipment or material carried by sea as marine cargo for the purpose of use on the project site, which are otherwise known as ‘project cargo’. Project cargo carried by sea to the construction site would have to be insured under a marine cargo policy against physical loss of or damage thereto and the insurer of the marine DSU may also be the primary insurer of the marine cargo policy.