Question

What are the risks associated with ALOP/DSU coverage in engineering insurance?

a.

Increase in commission terms

b.

Decrease in retention levels

c.

Increase in risk exposure

d.

Decrease in profitability

Answer: (c).Increase in risk exposure Explanation:The exposures get further aggravated if Advance Loss of Profit (ALOP) / Delay in Start-Up (DSU) coverage’s are associated with the material damage covers.

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Q. What are the risks associated with ALOP/DSU coverage in engineering insurance?

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