Advanced Loss of Profit (ALOP)
An organisation suffers loss of anticipated profits if the scheduled date of commencement of commercial operations of a new project or a plant is pushed ahead because of an accident while the project is under construction. This policy covers anticipated net profit plus fixed expenses for the period of delay due to any accident while the project is under construction.
The Advance Loss of Profit is designed to cover:
Loss of Gross Profit = Net Profit+Standing Charges
OR
Loss of Gross Earnings = Turnover-Specified Working Expenses
OR
Fixed Operation & Management Costs
- Debt Service Charges
- Increased Cost of Working
- Special Expenses e.g. penalties
The policy pays for the actual loss of gross profit incurred during the period of delay, commencing from the scheduled date of commencement of commercial operation upto the actual date of commencement of commercial operation subject to a time excess and indemnity period selected.
