Advance Loss of Profits
This type of policy will usually cover:
- Loss of Gross Profit equaling Net Profit plus standing charges or (anticipated GP)
- Loss of Gross Earnings minus Turnover, minus Specified working exps or
- Fixed operation plus management costs minus Debt Service costs, Increased Cost of working and special expenses such as penalties.
Policy pays actual loss of Gross Profit incurred during the period of delay commencing from the scheduled date of commencement of commercial operation up to the actual date of commencement of commercial operation – subject to time Excess and indemnity period selected.
The delay should have occurred due to a claim payable under marine-cum-CAR/Erection Policy, storage-cum-CAR/Erection Policy.
This coverage is usually taken by the Principal – as he stands to lose in case of any delay in the commissioning of the Project.
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