Starting a new business can be a complicated process. There are a lot of moving pieces and you’re never absolutely sure when you can get everything going and start making profits.
An accident in such a situation can further add to your burdens, delaying your profits and affecting your payments and liabilities.
We designed Principal’s Advance Loss of Profits (ALOP) insurance to help out entrepreneurs through such situations.
This is an add-on insurance plan that covers the actual loss of gross profits sustained as a result of a delayed start of business operations due to any accident covered under our Contractors’ All Risks policy or the Erection All Risks policy.
Note: The "sum insured" is the gross profits obtained from the turnover of goods produced or handled, services rendered or revenue or rentals achieved in the course of business for a period of 12 months (i.e. normally for the business year). The "indemnity period" (the period during which the insurance will compensate for losses) is determined by the insured, depending upon the replacement period for the building or plant insured, after damages have been suffered.