This insurance policy covers all the loss and damages of the insured item which are at work or at rest, or being dismantled for the purpose of cleaning or overhauling, or in the course of the aforesaid operations themselves or subsequent re-erection.

Exclusions:
This policy is not liable for losses & damages due to,

1. Electrical or mechanical breakdown, failure, breakage or derangement, freezing of coolant or other fluid, defective lubrication or lack of oil or coolant.
2. Damage to replaceable parts and attachments such as bits, drills, knives, or other cutting edged items, saw blades, dyes, moulds, patterns, batteries, tyres, connecting wires and cables and packing material.
3. Loss or damages due to explosion of any boiler or pressure vessel.
4. Loss or damage to waterborne vessels or crafts.
5. Loss or damage due to total or partial immersion in tidal waters.

This is an insurance of contractors' plant and machinery on an annual basis.It covers any loss or damage occurring at work, at rest or during maintenance operations and is limited to a specific construction site.