What is DSU insurance? Why it is a must have for all owners and developers!

Delay in Start-Up insurance or DSU insurance gives project owners extra protection in the occurrence of an insured physical damage event that causes extensive delay to a construction project. Delays and significant additional expenditures are commonplace in construction and engineering projects, and can often lead to more serious issues – such as damage to the owner’s reputation as well as financial penalties due to schedules and deadlines not being met.

It’s especially hard for projects to commence construction in the current economic climate as it is more difficult to gain funding. Delays add crippling stress to developers and may arise from a plethora of issues, from simple logistical issues to changes in scope or designs. More often than not, developers find that their insurance policies fall short as the causes of delay can be difficult to pinpoint definitively – leaving owners out of pocket and projects unfinished.

That’s where DSU insurance comes in. This type of cover can help you manage risk factors and reach a resolution quicker – acting as a “safety net” to protect your profits, as well as eliminate extra expenditures. Through gathering accurate documentation of schedules and progression, insurers are able to get to the root cause of issues and delays in the event that the cover is triggered. The indemnity may reimburse the owner only to the extent that they have actually suffered a loss.

The key to successful DSU claims is to accurately quantify the delay caused by the initial physical damage event only. It’s important to clarify the progress of the project at the exact time of the occurrence of a physical damage event, as well as to examine the organisation of schedule reporting, delays, and key developments. In taking out DSU cover, project owners benefit by gaining clarity so that they can move forward with their project, as well as receiving reimbursement for the damage event. Going forward, plans can be put in place to mitigate further potential losses.

At Kenzie’s we are experts in forensically analysing schedules to accurately ascertain the delay caused by the insurable event and the value of the indemnity due to the insured. This is where we can help out adjusters, insurers and the insured alike to ensure that a robust analysis is undertaken so that all parties concerned can reach an amicable settlement.

Check out our handy infographic for more information on DSU Insurance

DSU Insurance Infographic

The Kenzie Group is an experienced multi-disciplinary practice providing a team of highly experienced and qualified insurance and construction claims consultants, delay analysts, contract managers and quantity surveyors for your contract management and construction dispute resolution needs within the construction and engineering sectors.

Comprising two divisions – Kenzie Project Services and Kenzie Dispute Resolution – the group provides qualified and dedicated professionals across the disciplines of contract management, construction and insurance claims management, adjudication, arbitration and litigation.

All professionals working within Kenzie Group are hand-picked for their extensive industry knowledge and experience with backgrounds in construction and engineering.

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