This engineering insurance policy provides indemnity (financial recovery) for machinery and plant assets against unforeseen and sudden physical damage resulting from internal issues or breakdowns. The policy covers the following risks of unexpected and sudden physical loss or damage to plant and machinery:

1. Damage caused by electrical energy (short circuits, excess voltage, or induction)
2. Human factors such as faulty operation, lack of skill, or negligence
3. Manufacturer defects, including faulty design, material defects, workshop errors, issues with erection, stationary equipment, and mobility of electronic equipment
4. Electrical damage, lack of water, foreign bodies, failures in safety devices, overheating, impact, shock, pressure or lubrication defects, faulty operation, adjustments, casting issues, vibration, entry of foreign objects, loosening of parts, self-heating, and centrifugal force
5. Errors in design, calculation, manufacture, or assembly