The insurance is more appropriate where the bulk of the contract involves the erection and installation of machinery. The coverage is rathersimilar to Contract Works Insurance in that there are two sections, Section I in respect of damage to the property forming part of the erection works and Section II providing the Insured with indemnity in respect of legal liability to pay compensation to third parties for bodily injury or illness and for loss or damage to property occuring as a result of an accident at the Situation of the Contract and arising out of the performance of the Contract by the Insured. The cover is inclusive of all costs and expenses of litigation recovered by the claimants and also those incurred by the Insured with the written consent of the Underwriter.

Coverage shall begin with the delivery of Insured Property to the Contract Site or the commencement of work at the site on any operation provided for under the Contract whichever shall first occur and terminating with the completion of all construction and/or assembly or erection work and all machanical electrical hydrostatic and/or pneumatic testing incidental thereto or the expiry of the period of time specified in the Schedule or the commencement of operational testing whichever first occur.

It is important that the policy makes provision for reinstatement of sums insured following a loss subject to additional premiums. The policy also provides for escalation in sums insured beyond the Estimated Contract Price but this is limited to 10%.

• War and kindred risks, civil war, mutiny, civil commotion assuming the proportion of or amounting to popular rising, military rising, insurrecction, rebellion, revolution, conspiracy, military or usurped power, martial law etc and atcs of terrorism.
• Permanent or temporary dispossession resulting from confiscation, nationalisation, commandeering or requisition by any lawfully constituted aauthority or permanent or temporary dispossession of any building resulting from unlawful occupation of such building by any person.
• Ionizing radiations or contamination by radioactivity from nuclear fuel or nuclear waste from the combustion of nuclear fuel.
• Nuclear weapons material.
• Caused by act of persons in disturbance of public peace including wilful act of strikers or lock-out workers.
• Ownership or possession of or use under the ocntrol of the Insured or any person acting on behalf of the Insured of vessel, craft or thing intended for flying or travel on water etc, power driven vehicles licensed for road use other than any mobile crane and other equipment which is not more specifically insured.
• Consequential loss, liquidated damages or penalties of delay or detention or in connection with guarantees of performance or efficiency.
• Loss of or damage or non-recovery of drilling accessories below ground.

• Loss or damage to locomotive, waterborne vessels or craft, aircraft or any mechanically propelled vehicle other than vehicles at the Situation which have been included as Property Insured.
• Cash, bank notes, treasury notes, cheques, postal orders, money orders, stamps, securities, deeds and other financial instruments etc.
• Disappearance or shortage of property where such loss is revealed only by the making of an inventory or at periodic stocktaking, or is not traceable to any specific event.
• Cost of repairing, replacing or rectifying Insured Property which is defective in material or workmanship but not excluding resulting losses arising from such defective material or workmanship.
• Loss or damage due to fault defect error or omission in design plan or specification.
• Normal upkeep or making good.
• Wasting wearing away or wearing out corrosion erosion or deterioration.
• Consequential loss of any kind including penalties, fines, loss of contracts or loss arising from delays in completing or negotiating contracts.

• Liability assumed by the Insured by agreement such as under a contract.
• Liability arising out of contract of employment.
• Insured's own property or those under care custody or control of the Insured.
• Bursting of any boiler, economizer, pressure vessel or apparatus.
• Damage due to vibbration, removal or weakening of support.
• Liability in relation to the ownership, possession or use of machines or vehicle licensed for road use.
• Vessel or craft or aircraft including loading or unloading there of.
• Liability out of technical or professional advice given by the Insured or any person acting on behalf of the Insured.
• Products liability and defect in direction or advice given by the Insured other than those given solely in respect of the erection, testing or operation of the Insured Property.
• Liability from bursting of any steam boiler or any economiser or vessel or apparatus under steam pressure.

Extensions are possible on some of the exceptions under Section I through endorsements and subject to additional premiums. Deductibles are generally provided under two headings for Section I, one for natural perils losses which is normally higher and another one for other losses. In the case of Section II, the deductible is usually applicable to Third Parties' property damage.

Note: This information is for briefing purpose only. Full detail and conditions of policy cover are contained in VIA's official policy wording.