robfreeman.com... - What is DSU coverage? If you’re a project developer or a lender to a renewable energy project, you may want to purchase DSU insurance coverage, aka delay in start-up coverage, or DSU, to insure against the physical and financial damages that could occur during a project’s construction.
Also known as delayed completion coverage, DSU is a type of property coverage that may be included in a builder’s risk policy or construction all risk (CAR) policy.
DSU can be considered a type of business income coverage for projects that are under construction. DSU covers the loss of soft costs, such as operating expenses, lost income, interest charges to lenders, and advertising expenses that result from a delay in the expected completion of a construction project that occurs after a trigger date.
The trigger date is the date the project would have been completed and commercial operations would have begun. DSU coverage has a time-element deductible, meaning that a delay in start-up must exceed the deductible time for the policy to pay out.
DSU coverage is triggered by physical damage by or a covered loss to physical property damage peril for the project under construction., if delays are caused by non-covered perils the net delay by covered and non-covered perils will be netted out. The amount of coverage is limited to actual losses sustained, in other words the net income that would have been earned plus any fixed expenses incurred.
DSU will have a maximum term and maximum pay out amount.
8 сен 2024
