Our insurance brokers’ approach to risk management solutions helps you to achieve the right level of insurance cover.
Choosing Gallagher gives you access to local expertise backed by international experience that will help protect your business and let you focus on what you do best.
View our expertiseOur insurance brokers’ approach to risk management solutions helps you to achieve the right level of insurance cover.
view our broker servicesOur insurance brokers’ approach to risk management solutions helps you to achieve the right level of insurance cover.
Our experts can give you the advice you need across a variety of different services.
View our servicesWe take the time to get to know your business and our specialists have expertise in all industries. We then tailor insurance and risk management advice and solutions to match your specific needs.
CONNECT WITH AN EXPERTFind out the latest information and research from our experts to help keep your business safe.
View allIn the Business Insurance & Risk Market Update H1 2022 report, our experts provide market insights and offer guidance to help you ensure your business has the right protections in place.
Get the reportFor more than 90 years, we’ve helped businesses face their future with confidence. Hear more about our story and how our experience can help you.
View allA construction project time schedule demands the coordination of numerous moving parts, the ability to factor in ‘float’, or ‘slack’, and having contingency plans in place for when the unexpected occurs. Many common causes of delay to projects are within the involved parties' control, but there can also be factors that are not, such as extreme weather and other acts of God.
Over the last 10 years the demand for delay in start-up (DSU) insurance has increased across infrastructure, property development, mining and various other forms of capital works in order to protect the project participants from the financial effect of delay. It is also commonly a requirement of banks or other parties of equity or debt.
DSU is activated under material loss insurance cover such as a contract works policy and triggered by an indemnifiable loss.
The loss only comes into effect once the project has been delayed beyond its original operational deadline.
While the delay may be caused by a number of indemnified events occurring during a construction period, only a single claim would be made for delay in the original project timeframe. Only one deductible would equally apply.
To be considered valid, a DSU loss must
The full extent of the effects of a delay only becoming apparent towards completion of a project mean that insurers usually have to take a post-loss approach to analysing claims.
The amount paid on a DSU claim is measured as both the sum insured and the maximum indemnity period. Insurers liability is limited by both so the maximum indemnity period should reflect the maximum rebuild time and the sum insured cover projected financial exposure for that time.
Typically DSU doesn’t cover
DSU cover for construction projects is an important consideration but it’s an area that requires some skilled navigation and active advocacy in the event of a claim.
Gallagher’s construction specialist brokers have the expertise and industry knowledge to formulate insurance solutions for complex construction projects and assist stakeholders with managing their risk exposures.