With this policy, machinery is covered during the course of site erection from storage through handling, erection, commissioning to final testing and during any prescribed subsequent maintenance period. The policy is intended to cover the contractor for his contractual obligations.

The policy is written on an "all risks" basis and cover includes:

• → Fire and allied perils
• → Accident damage
• → Collapse, collusion, impact, theft, malicious damage
• → Damage due to faults in design, materials, workmanship
• → Electrical and mechanical breakdown and explosion during testing
• → Maintenance

The sum insured should reflect the contract value in respect of machinery. The policy is subject to either one excess or:

• → Basic
• → Major perils
• → Commissioning / Testing / Maintenance Excesses

By extension, the cover can include contractor's plant and equipment in use in pursuance of the contract The policy can also be combined with a contractors All risk Policy where there is an element of civil engineering work.