Delay in Start-Up or DSU coverage is an important addition to a contractor’s insurance policy that most builders risk insurance agencies recommend for their clients.

This coverage can prevent devastating financial loss for the builder and owner should a coverable loss occur.

Before purchasing this coverage from a construction risk insurance agency, it’s essential that project owners understand how this coverage works and how claims are handled.

Working with an experienced builders construction insurance agency, project owners and contractors can secure comprehensive DSU coverage that will protect the project should a loss occur.

Establishing the Basics of DSU Coverage

Before any builder or project owner should worry about making claims to their DSU policies, builders risk insurance agencies stress the importance of first getting the details of the contract right.

Omissions or poor estimating when writing the DSU contract is a prime reason why many claims get denied.

That said, a construction risk insurance agency will work with insured parties to establish critical information including:

  • Calculating the sum to insure.
  • Determining potential loss and the effect a loss will have on different parties involved with the project.
  • Determining the dates when the insurance policy can be triggered.

Making and Researching Claims Against DSU Coverage

Once it is determined that there will be a delay in the start-up of the project, this can be immediately reported to the builders construction insurance agency so the process of claiming a loss can be initiated.

A scheduling expert will be assigned to investigate the project and schedule as well as other experts who can determine the cause of the delay and whether there is a way around it to keep the project on track.

The project scheduler is usually interviewed by the builders risk insurance agency as well to gain as much insight as possible into how the current schedule was developed and modified over the life of the project.

If an actual delay in start-up is inevitable and the investigation finds no errors or issues with the project that could have been prevented, the delay is then considered a claimable loss.

The Importance of Keeping A Correct Schedule

One of the most critical details in establishing a claimable loss is maintaining an accurate project schedule and ensuring all parties involved in the project are working from it.

A common problem that construction risk insurance agencies come across when investigating DSU claims is a lack of communication throughout the project and multiple versions of the work schedule being used by different parties.

It is an issue that must be avoided from the start as it can affect whether or not a DSU loss will be deemed claimable.

Need For Accurate Estimating and Scheduling

There is no doubt that Delay of Start-Up coverage is an essential part of any contractors policy purchased from a builders risk insurance agency.

For an insured to get the full benefit that this coverage offers, it’s essential to work with an expert insurance agency familiar with this coverage.

Through proper estimating and open communication, all those working on the project will have the benefit of being in the loop, working within the same schedule and time frame.

If attempts to prevent a loss fail, it will be claimable and reimbursable as outlined by the contract!

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