Business Interruption / Delay / Project Delay Insurance

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Specialist cover to protect contractors, developers and construction firms against loss of income, additional costs and penalties caused by project delays.

CALL FOR EXPERT ADVICE
GET A QUOTE NOW

We compare quotes from leading insurers

  • Allianz
  • Aviva
  • QBE
  • RSA
  • Zurich
  • NIG

WHEN PROJECTS ARE DELAYED, COSTS AND PENALTIES ADD UP

Protect cash flow and project viability when construction delays occur

Construction projects can be delayed by damage on site, plant breakdown, supply-chain disruption or insured events affecting key project assets. Business Interruption and Project Delay Insurance is designed to cover loss of revenue, additional costs and financial consequences when a covered event causes work to stop or completion to be pushed back.

What Business Interruption / Project Delay Insurance Can Cover

Protection against loss of income and additional costs following insured damage or delay events.


  • Loss of anticipated revenue or gross profit due to insured damage
  • Increased cost of working to minimise delay and keep projects on track
  • Additional site and overhead costs during extended build periods
  • Delay in start-up (DSU) for project-financed construction schemes
  • Cover linked to damage at the contract works, plant or insured premises
  • Extensions for supplier/utility damage and access issues (where available)
  • Potential protection against liquidated damages (LDs) or penalties following an insured event (specialist cover)
  • Cover tailored to project values, completion dates and finance requirements

Who Is Project Delay Insurance For?

Typical Policyholders


  • Main contractors and principal contractors
  • Developers and property owners
  • Project-financed SPVs and investors
  • Civil engineering and infrastructure firms
  • Renewable energy and power projects
  • Large refurbishment and commercial build schemes

Typical Project Types & Scenarios


  • New-build residential and commercial developments
  • Industrial, logistics and warehouse projects
  • Infrastructure – roads, bridges, utilities and public realm
  • Energy, renewables and plant installations
  • Larger refurbishment and fit-out programmes

Key Causes of Construction Business Interruption & Delay

Physical Damage Triggers (Property / Contract Works)


  • Fire, explosion or major escape of water on site
  • Storm, flood or other insured weather events
  • Collapse, structural damage or major on-site incident
  • Theft or damage to critical plant, machinery or materials
  • Damage at key suppliers or locations (if covered)

Financial & Contractual Consequences


  • Extended prelims, site overheads and staff costs
  • Delayed rental, sales, toll or operating income
  • Pressure from funders and project stakeholders
  • Liquidated damages (LDs) and penalty clauses
  • Reputational impact and client relationship strain

Why Arrange Project Delay & Business Interruption Cover Through Insure24?


  • Access to insurers experienced in construction BI and DSU risks
  • Policies aligned with contract works, property and plant insurance
  • Support to structure cover around project finance and lender requirements
  • Advice on indemnity periods, waiting periods and sum-insured calculations
  • Options to combine with wider construction and contractors’ programmes
  • Claims support if a major loss threatens project timelines and cash flow
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“When a major water damage incident halted works for several weeks, the project delay cover arranged by Insure24 helped protect our cash flow and reassured both the client and funder.”

Director, UK Construction & Development Group

KEEP YOUR PROJECTS AND CASH FLOW ON TRACK


  • Cover designed around specific projects and revenue streams
  • Integrated with your existing construction insurance programme
  • Suitable for contractors, developers and project-financed schemes
  • Helps satisfy lender and stakeholder requirements
  • Supported by specialist construction insurance advice from Insure24

FREQUENTLY ASKED QUESTIONS

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What is project delay / delay in start-up (DSU) insurance?

Project delay or delay in start-up (DSU) insurance covers financial loss when completion of a project is delayed due to insured damage, such as fire or flood, affecting the contract works or key insured assets. It can protect anticipated revenue, rent or debt servicing ability once the project was due to be operational.

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Is project delay cover the same as standard Business Interruption insurance?

Not exactly. Standard Business Interruption usually protects an existing business following damage at its premises. Project delay or DSU is tailored around a construction or development project and protects anticipated income or financial obligations once that project is completed.

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Does project delay cover liquidated damages (LDs) or penalties?

Some specialist policies can be structured to address LDs or contractual penalties following an insured event, but this area is complex and highly conditional. Insure24 can discuss contract terms and explore suitable options with insurers.

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How do I choose an appropriate indemnity period?

The indemnity period should reflect how long it could reasonably take to repair damage and recover the project back to where it would have been without the loss. This depends on build complexity, lead times, planning and supply-chain factors. We can help model realistic scenarios with you.

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What information is needed for a project delay / DSU quotation?

Insurers typically require details of the project value, programme and completion dates, anticipated income or debt servicing, key assets and dependencies, construction methods, risk management measures and any existing property/contract works cover in place.

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