Understanding Delay in Start-Up Risk across APAC

Across Asia Pacific, construction owners and investors are pursuing larger, more complex projects in power, Liquefied Natural Gas (LNG) and infrastructure. At the same time, commissioning risks, supply chain disruption and more volatile natural catastrophe events are exposing gaps between what Delay in Start-Up (DSU) insurance is expected to deliver — and what it indemnifies.

Key Takeaways:

1. 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.
2. A minor event can generate a DSU loss many times the financial impact of the physical damage, particularly in power and LNG builds where damage to a critical component can halt an entire project for months or years.
3. Engaging on DSU when financial modelling takes place is the most effective way to avoid under-insurance, coverage gaps and disputed claims.

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.