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. Before shipment, what is reimbursed, and what does that require of the insured?
An ENGAGED COST, that is an accounting value the insured establishes itself from its purchases, its hours and its allocated overheads: the cover becomes strictly indemnity based and requires cost accounting able to reconstruct progress at a date
On a receivable the indemnity is computed on a certain amount and the difficulty is proving the cause; here there is no invoice, and an insured without that accounting discovers at claim time THAT IT CANNOT QUANTIFY ITS OWN LOSS. The answer using the contract price of the portion made is the most natural and it includes a margin the cover does not pay. The one keeping the lost margin names a real economic loss an indemnity cover is not meant to repair, since it restores and does not enrich.
Glossary entry · principe-indemnitaire2. The triggering event is harder to pin down than an unpaid invoice. Why, and what does that impose on the insured?
Because the loss is an INTERRUPTION of the contract, a public decision barring imports, termination by a public buyer, an embargo, a lasting impossibility, events with no obvious date that build up in stages; policies often requiring the interruption to be final or prolonged, the insured must decide to stop production, which fixes its loss, WITHOUT YET KNOWING whether the event will qualify
This asymmetry is structural and is handled by keeping everything that will date the decision rather than by waiting: the worked case shows it, a suspension with no stated duration against a policy requiring four months. The court ruling answer imports a requirement none of these policies carries and that would make the cover unusable in the countries where the question arises. The one excluding public authority reverses the mechanism, since a public measure is precisely the commonest case.
Glossary entry · assurance-credit-export3. What is to be done with what has been manufactured, and what decides most of the indemnity?
The RECOVERABLE VALUE, which the insurer will rightly deduct: standard equipment resells, specific equipment designed for a site, a voltage or a local standard resells only for scrap or after costly modification, and that distinction is largely settled at the DESIGN stage, long before anyone thinks about insurance
The insured therefore has an interest in documenting VERY EARLY how specific what it makes is, failing which the discussion will run on assertions: in the worked case, the voltage, the interface language and the local standards are the documents to gather while the design file is still open. The answer ignoring what becomes of the equipment forgets the cover is indemnity based and that keeping both the indemnity AND a resellable asset would be enrichment. The one requiring destruction confuses proof with a loss of value established through specifications.
Glossary entry · souscription4. The operations director wants to finish the remaining twenty percent so as not to disrupt the workshop. What is the answer?
That most covers require STOPPING commitments as soon as the event is known and pay the reasonable costs of stopping, including termination payments to subcontractors: the cost added afterward in knowledge of the suspension risks staying with the insured, which will have paid to worsen its own loss
The decision to stop, commercially painful, is also an INSURANCE DECISION, and its motive in the worked case, keeping the workshop loaded, is not an insurance motive. The answer awaiting the insurer's authorization reverses the burden: it is an obligation of the insured and not a faculty subject to consent. The one proposing to finish and ship is the most dangerous because it appears to solve the problem by switching to receivable cover: shipping to a country that has suspended imports does not create a recoverable receivable, it adds cost and stranded goods.
Glossary entry · bonne-foi5. Where is the switch point between pre-shipment cover and receivable cover, and why is it subtler than it looks?
Ordinarily at loading, defined in the contract, and it is subtle on contracts delivered in lots or installed on site: part of the equipment can have left while the rest is still in the workshop, so BOTH COVERS RESPOND SIMULTANEOUSLY on different parts of the same contract
The two covers do not stack, they relay, and knowing WHICH responds, ON WHAT PART and ON WHAT DATE is exactly what a well kept file lets you state in one page. The invoicing answer follows accounting logic that does not coincide with the contractual point, an invoice being able to precede or follow loading. The acceptance answer borrows the transfer of risk rule from the sale contract, which governs other questions and not this one.
Glossary entry · credit-caution