The Policy is structured under 2 Sections, viz.

Section 1– Material Damage
Section 2– Third Party Liability
Section 3– Principal’s Advance Loss of Profits

General Exclusions

- War, invasion, martial law, strike, riot and civil commotion and acts of terrorism, confiscation,    nationalisation
- Nuclear reaction, nuclear radiation or radioactive contamination
- Willful negligence
- Cessation of work, partial or total

Special Exclusions applicable to Section 1
- Consequential losses
- Loss or damage due to faulty design, defect or error or omission in design or specification
- Loss or damage due to faulty design, defective material or bad workmanship
- Wear and tear
- Loss or damage to files, drawings, currency notes, stamps, securities, packing material etc.
- Loss or damage discovered at the time of taking an inventory

Special Exclusions applicable to Section 2
- Expenditure incurred in doing or re-doing or making good or repairing or replacing anything covered or   coverable under Section 1 of the Policy
- Liability consequent upon death, illness or injury caused to Contractors’ or Principal’s own employees
- Loss or damage to property belonging to the Insured or held in care, custody or control of the Insured
- Loss or liability arising out of use of vehicles designed and licensed for general road use, air-borne or   water-borne vessels or craft
- Liability assumed by agreement

Special Exclusions applicable to Section 3
Loss of gross profit and/or increased cost of working due to any delay caused by or resulting from:
- loss or damage covered under Section 1 by way of endorsement unless it has been specifically agreed in   writing
- earthquake, volcanism, tsunami, unless specifically agreed
- loss or damage to surrounding property, CPME
- loss or damage to operating media or feedstock, shortage, destruction, deterioration of or damage to any   materials necessary of insured’s business
- restrictions imposed by Public Authority
- non-availability of funds
- alterations, improvements, rectification of defects
- loss or damage to items taken over by the Insured or to which cover under Section 1 to the policy is   expired
- any loss due to fines, penalties, cancellation of license, imposition of restriction by Authority etc
- loss or damage to erection work of prototype nature unless specifically agreed