EXPERT AREAS
Delay in Start-Up & Advanced Loss of Profits
DSU / ALOP losses are among the most technically complex claims in the insurance market. Quantifying them accurately requires a precise understanding of the project’s financial model, the construction programme, the causal link between the insured event and the delay, and application of the specific terms of the policy.
BINOCLE provides independent DSU and ALOP assessments for Insurers and Reinsurers. We determine the right number — not the convenient one.
What we assess
Loss of interest insured during the delay period
We establish the revenue the project would have generated had operations commenced on the originally scheduled date. This requires detailed analysis of contracted tariffs, power purchase agreements, offtake contracts, production ramp-up curves and prevailing market conditions. We analyse the interest insured and the proportion it bears to revenues and gross profit.
The period of indemnity
We assist experts who determine the actual delay period attributable to the insured event, distinguishing it from pre-existing programme slippage, contractor delays and other non-covered causes. This is frequently the most contested element of a DSU claim.
Savings and mitigation
We assess the variable and fixed costs saved during the delay period, any income generated in the interim, and the steps taken by the insured to mitigate the loss — including their effectiveness, reasonableness and economic efficiency.
Policy response and indemnity calculation
We work within the specific terms of the DSU or ALOP policy as advised by loss adjusters, including deductible periods, maximum indemnity periods and any co-insurance or underinsurance provisions. Our reports are structured to align directly with the policy wording.
OUR EXPERIENCE
BINOCLE has quantified DSU and ALOP losses across some of the most complex construction and infrastructure projects in the world.
Our track record spans multiple continents and a wide range of project types, including:
- Hydroelectric power complexes, LNG plants and petrochemical facilities
- Combined cycle gas turbine (CCGT) power stations
- Renewable energy projects — wind, solar and battery storage
- Activated carbon plants
- Hotels
- Major infrastructure projects — bridges, tunnels, roads and ports
- Other construction and erection risks under CAR/EAR policies
We have handled losses arising from physical damage, political violence, natural catastrophe events and contractor insolvency, as well as claims involving significant political violence, war and terrorism exposures.
WHY BINOCLE
Why DSU and ALOP Claims Require Specialist Expertise
DSU and ALOP losses are not resolved by a standard business interruption formula. They demand a different methodology:
The project has no trading history. There are no prior-year accounts to establish a baseline. The financial model must be reconstructed from scratch using the project’s own projections, independent market data and contractual documentation.
The causal analysis is technical and disputed. Delays in complex construction projects are rarely attributable to a single cause. Separating the insured delay from concurrent uninsured delays — each potentially involving multiple contractors, subcontractors and design consultants — requires forensic rigour.
The policy terms are project-specific. DSU and ALOP wordings vary significantly. The deductible structure, the definition of the indemnity period and the treatment of partial operations all materially affect the outcome of the claim.
HOW WE DO IT
Our Approach
Independent by design
Early engagement
We recommend appointment at the earliest possible stage. Early involvement allows us to identify the key financial issues, align expectations with the insured and establish an agreed methodology before positions become entrenched.
Continuous reporting
We keep instructing parties informed throughout the process. We do not deliver a report at the end. We communicate findings as they develop, flag issues early and support the broader claims team in managing the settlement process.
Clear, defensible reports
Need Support on a Complex Claim?
WHY BINOCLE
Frequently Asked Questions
What is the difference between DSU and ALOP?
DSU (Delay in Start-Up) and ALOP (Advanced Loss of Profits) refer to the same type of insurance coverage — protection for the financial losses suffered when a construction or engineering project is delayed beyond its scheduled completion date due to an insured physical damage event. The terms are used interchangeably in different markets, with DSU more common in London and ALOP more prevalent in some international markets.
When should a forensic accountant be appointed on a DSU claim?
Ideally at the point of loss notification or as soon as it becomes apparent that delay to commercial operations is a likely outcome. Early appointment allows the forensic accountant to engage with the insured’s financial team, review the project’s financial model and establish an agreed methodology before the claims process becomes adversarial.
How is the DSU indemnity period calculated?
What documentation is required to quantify a DSU loss?
The core documentation includes the project’s financial model and revenue projections, the construction programme and any programme updates, the offtake or revenue contracts (PPAs, tariff agreements, sales contracts), evidence of the physical damage event and its impact on the programme and the DSU policy wording. BINOCLE will identify the specific documentation required on instruction.
Do you work on DSU claims in all markets?
BINOCLE handles DSU and ALOP claims for Insurers and Reinsurers across multiple jurisdictions. We are based in London and operate internationally. Our team has experience in claims under a range of jurisdictions.