Advance Loss of Profit (ALOP) Insurance

Safeguarding revenue against project delays caused by insured physical damage

Protect Your Project's Financial Future
Advance Loss of Profit (ALOP) Insurance is a specialized cover that compensates businesses for financial losses caused by delays in project completion due to insured physical damage. Unlike standard business interruption policies, ALOP is designed for long-term projects in construction, manufacturing, and energy sectors where delays lead to significant revenue loss and ongoing expense burden.
Revenue Protection
Fixed Cost Coverage
Extended Indemnity Period
Key Benefits of ALOP Insurance

Revenue Protection

Covers lost gross profit and anticipated income due to project delays caused by insured physical damage events.

Fixed Cost Coverage

Reimburses ongoing expenses like salaries, loan interest payments, rentals, and other standing charges during the delay period.

Extended Indemnity Period

Provides coverage for delays lasting 12-24 months or more, aligned with project complexity and restoration requirements.

Customizable Coverage

Tailored to specific project timelines, risk exposures, and business requirements for optimal protection.

Complements CAR/EAR Policies

Works seamlessly alongside Contractor's All Risk or Erection All Risk insurance for comprehensive project protection.

What Does ALOP Cover?
RiskCoverage
Fire/ExplosionCovered
Natural Disasters (Flood, Earthquake)Covered
Equipment BreakdownCovered
Construction AccidentsCovered
Sabotage/RiotsCovered (If included)
Pre-existing delaysExcluded
Labor strikesExcluded (unless added)
Design flawsExcluded (unless covered separately)
Who Needs ALOP Insurance?
Construction Firms - Protection against delays in building projects and infrastructure development
Power Plants - Coverage for delays in commissioning thermal, hydro, solar, and wind power projects
Oil & Gas - Protection for refinery and pipeline projects facing commissioning delays
Manufacturing Units - Coverage for factory setup interruptions and production delays
Infrastructure Developers - Protection for roads, bridges, metro, and airport project delays
Technology Projects - Coverage for data centers, telecom infrastructure, and IT project delays
Marine Projects - Protection for port development, shipbuilding, and offshore project delays
Aviation Projects - Coverage for airport construction and aviation infrastructure delays
How Does ALOP Work?

Physical Damage Occurs

Insured physical damage event (fire, natural disaster, equipment failure) affects the project site or equipment.

Project Gets Delayed

The physical damage causes delays in project completion, commissioning, or revenue generation beyond the planned date.

ALOP Compensation Kicks In

Policy compensates for lost revenue, ongoing expenses, and additional costs to expedite work and minimize delay impact.

Common Exclusions
Pre-existing Delays - Delays that existed before the insured physical damage event
Labor Strikes - Industrial action unless specifically covered under the policy
Design Defects - Flaws in design or engineering unless covered separately
Material Shortage - Delays due to unavailability of materials or components
Labor Shortage - Delays due to unavailability of skilled or unskilled workers
Legal/Regulatory Delays - Delays due to permit issues or regulatory compliance
Normal Wear and Tear - Gradual deterioration not constituting sudden physical damage
War and Terrorism - Acts of war, invasion, terrorism unless specifically covered
ALOP Claim Process

Immediate Notification

Notify XtraTrust and insurer immediately upon discovery of physical damage that could cause project delays.

Damage Assessment

Arrange for surveyor to assess physical damage and determine repair/replacement time required.

Delay Quantification

Document the delay period and calculate financial impact including lost profits and additional costs.

Financial Documentation

Provide detailed financial records, project plans, and evidence of anticipated profits and ongoing expenses.

Claim Evaluation

Insurer evaluates the claim based on policy terms, financial evidence, and delay causation.

Settlement Payment

Upon approval, settlement covers verified lost profits, standing charges, and additional expediting costs.

Key Suggestions for Optimal ALOP Protection
Accurate Financial Projections - Ensure sum insured reflects realistic profit and cost projections for the indemnity period
Appropriate Indemnity Period - Select period that accounts for worst-case delay scenarios and restoration time
Detailed Documentation - Maintain comprehensive project plans, timelines, and financial records for claim purposes
Risk Assessment - Identify project-specific delay risks and ensure appropriate coverage extensions
Integration with CAR/EAR - Coordinate ALOP coverage with underlying property insurance for seamless protection
Regular Policy Review - Update coverage as project progresses and financial projections change
Stakeholder Alignment - Ensure all project parties understand coverage scope and claim procedures
Prompt Notification - Establish clear procedures for immediate notification of physical damage events
Why Choose XtraTrust for ALOP Insurance

Project-Specific Underwriting

We assess delay risks unique to your industry and project requirements.

Seamless Claims Support

Fast-track settlements to minimize cash flow disruptions during project delays.

Global Insurer Network

Access to specialist markets for complex projects and international coverage.

Integrated Risk Solutions

Bundled with CAR/EAR policies for complete project protection.

Key Benefits of ALOP Insurance

Safeguarding Revenue Against Project Delays

Comprehensive protection for anticipated profits and ongoing expenses when project completion is delayed due to insured physical damage.

Extended Coverage Period

Flexible indemnity periods that can extend 12-24 months or more, aligned with project restoration requirements.

Integrated Project Protection

Works seamlessly with CAR/EAR policies to provide complete coverage from construction through commissioning and operation.
Frequently Asked Questions
Common queries about Advance Loss of Profit (ALOP) Insurance

Ready to Protect Your Business?

Get a customized quote in under 2 minutes. No hidden fees, no obligations.

⚡ Instant digital policy issuance • 📞 24/7 support • 🛡️ Zero paperwork claims