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. What distinguishes this cover from ordinary business interruption, and what follows?
The absence of a track record: the asset has never operated, the amount is built on a hypothesis that must be fixed in writing before a loss gives everyone good reasons to reread it differently
Classic business interruption starts from the accounts of the preceding months, and the difficulty concerns corrections to a known trend; here no reference year exists. One insures a hypothesis, which is why the business plan filed at placement plays a role nothing plays in an operating policy. The answer mentioning a construction overrun confuses the two losses the module separates in its first sentence: repairing and re-erecting belong to the damage policy, revenue never produced belongs to this one.
Glossary entry →2. A project is 45 days late for vessel unavailability when a fire occurs. The owner claims the entire gap between the planned date and actual commissioning. What becomes of that claim?
The 45 vessel days drop out, being attributable to no physical damage: they would have run even without any loss, and only delay attributable to the fire counts
A large project is almost always already late when the loss occurs, and that restriction is the source of nearly all the disputes: a late project stays late at its own cost. A counterfactual schedule must therefore be built, determining what would have become of an already troubled project had the fire not happened, and that schedule is argued all the harder because neither party can prove it. The answer making the exclusion depend on an express clause inverts the logic: those days fall away through the very definition of what the cover measures.
Glossary entry →3. A considerable physical loss delays by forty days a project whose deductible is thirty. What does that number produce, and why is it surprising?
An indemnity on ten days only, the deductible being temporal and removing the first days: many heavy losses open no delay indemnity at all because they are recoverable
The deductible is expressed in days and not in euros, which entirely decouples the delay indemnity from the severity of the physical damage: that is the module's counterintuitive effect, and it explains why so many spectacular losses open nothing on this side. Three caps in fact compound, the deductible in days, the indemnity period in months and the limit in amount. The answer imagining it proportional to the damage is the one formed spontaneously when coming from the damage policy, and it is precisely the confusion of the two losses. The one believing it all-or-nothing lends it a brutality it does not have.
Glossary entry →4. A delay comes from a strike, a refused permit or a component shortage. What does it open, and why does that condition decline more files than all the caps combined?
Nothing, for want of covered physical damage at its origin, and because the causes of delay on a large project are mostly immaterial
The cover is narrow by construction, and it is the second half of the answer that matters: the principle is the same as for any business interruption, but it bites far harder here because delays on a large project mostly come from causes involving no damage. A project owner reading it as insurance against delay will be disappointed at the first event, and that reading needs correcting before placement rather than after. Answering that the deductible would suffice to open the file confuses a cap, which reduces an indemnity that is due, with a condition of substance, which decides there is none.
Glossary entry →5. One delay produces two distinct losses, and a debt-financed project adds a third question. Which?
The owner's lost revenue and the contractor's contractual penalties, which are not covered by the same clause; and the lender, named beneficiary, decides who collects
The lost revenue is the owner's, whereas the construction policy is often taken out by the main contractor, whose delay loss is of an entirely different nature: penalties it pays to the owner, which are not business interruption. On a financed project the lender ordinarily requires being named beneficiary, since that indemnity services the debt while nothing produces, and the beneficiary clause then decides who collects: it does not change the amount, it entirely changes the owner's interest in arguing about it. The answer joining overrun and revenue under one cover repeats the error the module opens by setting aside, and it is the most frequent one.
Glossary entry →