Understanding Delay in Start-Up: Principles, Exposures and What Drives Outcomes Across APAC
Snapshot
- Under an attached first-party policy, Delay in Start-Up (DSU) coverage is triggered only by physical damage, and how that damage occurs is the most contested part of any claim.
- A minor event can generate a DSU loss many times the financial impact of the physical damage, particularly in power and Liquefied Natural Gas (LNG) builds where damage to a critical component can halt an entire project for months or years.
- Engaging on DSU when financial modelling takes place is the most effective way to avoid under-insurance, coverage gaps and disputed claims.
Across Asia Pacific, construction and infrastructure projects are becoming larger, more complex and more exposed to commissioning and natural catastrophe risks. At the same time, gaps between expected and actual DSU recoveries can materially impact project returns, financing and stakeholder confidence. This report provides a focused view of DSU principles, exposures and claim drivers across APAC, helping project owners and investors design cover that better reflects real project timelines and outcomes.
“There is no standard DSU wording in the market. Every policy needs to be tailored specifically to the project. If the language and definitions do not align precisely with the attached CAR policy, that gap will surface at that critical moment when a claim is assessed.”
– Vincent Banton, Head of Construction and Infrastructure, Asia
Panel session at Aon’s Asia Construction Conference
In a presentation at Aon’s Asia Construction Conference held in Ho Chi Minh City on 15 April 2026, Vincent Banton, Head of Construction and Infrastructure, Aon Asia and Young Jun Lee, Head of Wholesale – Construction and Engineering, QBE Asia discussed how DSU works in practice, where exposure is greatest across the project lifecycle, and how better-aligned cover can improve claim outcomes.
Inside the paper, you’ll find:
- A clear explanation of how DSU works under attached first-party policies — and why the cause and nature of physical damage are often the most contested elements of a claim.
- Analysis of where DSU exposure is greatest across the project lifecycle, with a focus on construction, commissioning and the transition into operations.
- Practical guidance on structuring DSU and Business Interruption (BI) — including limits, triggers and indemnity periods — so policies “speak the same language” and better reflect real project schedules and financial outcomes.
