Every answer and its explanation appears here once you have finished the path. Each one then links to the matching glossary entry, where the concept is set out in full with its worked example.
1. A construction policy covers a defined site. What does that leave outside on a large project?
A major share of the value, which spends months elsewhere: workshop, quay, hold, convoy, rented warehouse
The intuition of a construction site as a single place is wrong for a large project, where heavy equipment is manufactured elsewhere and waits a long time before arriving: the cover follows an address while the value travels. That is where all this module's gaps come from, and they sit at scope boundaries rather than at the heart of the covers. Believing customs covers anything confuses an import formality with an insurance contract; restricting the subject to finishing materials inverts the order of amounts, since it is the heavy, made-to-order items that wait outside longest.
Glossary entry →2. Transport cover often ends at the first of two terms, one being a day count after unloading. Which scenario opens the gap?
A delayed project: the count runs out at the port before any delivery to site, and the item sits there with neither transport nor construction cover
The gap comes from no fault and no exclusion: it comes from a schedule, and it opens exactly when the project is going badly, that is, when everyone is looking elsewhere. The day count appears on no tracking sheet, and nobody is in charge of watching it between the freight forwarder, which delivered, and the site, which has not received. The other three answers name classic transport cover difficulties, which are argued and settled: this one cannot be argued, because at the date of damage no cover was running.
Glossary entry →3. The off-site storage extension is bounded in three ways. Which, and when do they tighten?
By declared location, amount per location and security requirements, and those three tighten at the precise moment storage increases
The mechanism is the same as the day count and nastier still: it is when a site accumulates, unable to install, that storage overflows the declared location, exceeds the amount per location and falls back on warehouses whose security was never checked. The three limits therefore give way together, and at the worst moment. The answer naming deductible, sub-limit and notification period names real policy parameters, which bound an indemnity once cover exists; here the question is whether it does.
Glossary entry →4. An item is damaged on the quay and the transport insurer pays in full. Commissioning is delayed by three months. What does the delay cover owe?
Nothing, where the delay cover requires damage covered under its own policy: the physical indemnity is intact and the financial loss entire
The condition requires the damage to have been covered by the very policy carrying the delay cover, and by no other, and that one-line nuance decides the whole head. The file is therefore perfectly settled on the physical side and entirely on the owner on the financial side, which is disconcerting when you have just received a check. It is the check to make before the loss, reading the construction and transport policies side by side, and it belongs to neither. The answer invoking transfer of ownership imports a contractual question that does not govern the delay cover.
Glossary entry →5. Two items carry the same sum insured. One is a series part, the other made to order with an eighteen-month lead time. How do they differ?
By the calendar cost: an item's value is its price plus its remanufacturing lead time, and the same sum carries wholly disproportionate consequences
The sum insured measures what it costs to remake the item, never what its absence costs the project, and the two quantities bear no relation on made-to-order equipment. That is what should govern the attention given to such items during their stay away from site, rather than their face value: protect first what takes longest to replace. The answer treating them as identical is the one produced by reading the schedule of sums insured, which is sorted by amount and never by lead time.
Glossary entry →