In the case of large industrial risks, Underwriters are prepared to consider granting much more broader scope of cover due to the size and complexity of he risks. Over time, wordings have evolved for insuranced of such risks and there are many variations which have been put together by insurance intermediaries.

As most of the wording are not tested, it was felt by Underwriters that there should be some standardisation. Hence, in the UK insurance market, the Association of British Insurers have come up with a set of wordings for Property Material Damage and Business Interruption.

Essentially, the contingencies covered are all risks subject to the specified excluded causes and exclued property.

Some of the important excluded causes :

• Faulty design, materials, workmanship, inherent vice, latent defect, gradual deterioration, wear and tear, deformation or distortion.
• Interruption of water, gas, electricity and failure of effluent disposal system.
• Collapse or cracking of buildings.
• Corrosion, rust, extremes of temperature, dampness or dryness, wet or dry rot, shrinkage, evaporation, weight loss, pollution or contamination, change in colour and flavour, change in texture or finish, action of light, vermin, insects, marring or scratching.
• Theft unless forcible and violent means. Damage to building by thieves.
• Fraud and dishonesty.
• Disappearance and unexplained shortage.
• Cracking, fracturing, collapse and overheating of boilers, mechanical or electrical breakdown.
• Subsidence, landslip, heave, settlement of new structures.
• Coastal river erosion.
• Wilful act of negligence.
• Cessation of works, delay.
• War, Civil War etc, Mutiny, Civil Commotion.
• Acts of terrorism excepts fire.
• Confiscation, requisition, order of public authority.
• Nuclear weapons materials, radiation and contamination.

Some of the excluded property :

• Money and valuables, china and other fragile items.
• Goods in trust, documents, manuscripts, books, computer system records, patterns and plan.
• Electronic installations, computers and data processing equipment unless caused by named perils.
• Vehicles, railway stock, watercraft, spacecraft.
• Property in transit, erection or demolition.
• Land, roads, pipelines, offshore property.
• Property undergoing process, alteration and repair.
• Machinery during installation.
• Property more specifically insures and property covered under marine insurance.
• Boiler.

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