Principal’s Advance Loss of...

Principal’s Advance Loss of Profits (ALOP)

Business delay insurance covering lost income, standing charges, and additional expenses, complementing existing policies.

Supporting Your Business Through Every Delay, So New Venture Can Start Strong

Sukoon Principal’s Advance Loss of Profits (ALOP) Insurance is designed to support businesses during the critical phase of starting operations. Launching a new venture involves many moving parts, and any delay in commencement can directly affect projected profits, cash flows, and financial commitments. An accident during construction or installation can further increase these pressures by postponing the start of operations and extending financial liabilities. ALOP insurance helps cushion this impact by protecting against income losses caused by such delays. This add-on cover indemnifies the actual loss of gross profits resulting from a delayed start of business due to an accident insured under a Contractors’ All Risks (CAR) or Erection All Risks (EAR) policy, helping businesses stay financially secure until operations begin.

What’s Covered

  • The standing charges (continuing business expenses) like the salaries and wages paid to employees, plus the net profit.
  • The increase in the cost of working, i.e., the additional expenditure necessarily and reasonably incurred while avoiding or diminishing a reduction in turnover, revenue, or rentals.

your questions answered

We are here to help. Find the most commonly asked Principal's Advance Loss of Profits (ALOP) Insurance questions.

No, any loss or damage to items that are immediately affected by the above are not covered. However, your insurance can be extended to cover any loss or damage to the correctly executed items resulting from an accident that happened because of faulty design, defective material or workmanship.

No, it's not. It totally depends on you. But we would say that it is advisable.

So, this is how it goes. You will need to estimate the maximum value of the stock that you may be holding at a particular point of time during the policy. This will be considered as the sum insured and the premium rate is charged based on this amount.

At the beginning of each month, you will need to declare the highest value of the stock that you were holding during the previous month. The same will be considered as the declaration for that month. At the end of the policy period, the premium is adjusted based on the average monthly declarations provided by the insured.

To be honest, we don't usually insure plastic factories. However, you can reach out to us and we can come to a decision based on your case.

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