ALOP is also known as Delay in Startup and cover financial consequences of a project being delayed because of Occurrences related to natural perils inherent defects and human failures that lead to material damage of an accidental nature resulting into accidental damage to the project material during erection/testing stages and thereupon consequently loss of profit due to delay in startup of the Project. It basically follows the principle characteristics of an annual consequential loss policy but is issued in advance of the actual commencement of the business since it is a compulsion from the financers of the Project. For the insurers, the financial consequences at stake are those which relate to the period after the contractor would have handed over the plant to the owner/principal and commercial operations commenced. Thus, the principal alone and his financiers have an insurable interest in the financial consequences of a delay in the project and as such policy is issued to the principal/owner of the project with the interest of the financiers suitably recorded. Policy provides to indemnify the principal or the project owner for the actual financial loss sustained due to delay in commencement of the commercial operations of a new project which is under installation/construction. Delay must be caused by direct physical loss or damage admissible under material damage CAR/EAR policies covering the contract works. Sum Insured is computed on the basis of the financial model of the project. The period for ALOP coincides with the EAR/CAR policy period including the testing period, if covered, and terminates with the commencement of commercial operations. The period of indemnity commences on the COD i.e., the day on which the project would have been taken over by the owner had the accident not occurred, and ends on the day the commercial operation starts. The time excess or the waiting period is the period within the period of delay for which loss is borne by the insured.