There are three sections under this policy.

Section 1 (Material Damage)

This policy covers unforeseen and sudden physical loss or damage to the insured equipment from any cause other than those excluded. Excluded: Aircraft damage, corrosive gases, water and humidity, short circuit and other electrical causes, faulty operation, lack of skill, gross negligence, design, manufacturing, assembly and erection faults, defects in casing, workshop error, bad workmanship, malicious act, burglary/theft. Note: Unless specifically indicated in the Policy Schedule or by extension clause the above are not covered.

Section 2 (External Data Media) 

Loss and damage of Data media specified in the Schedule is covered under this Section. The policy covers for the cost of replacing the data media and those for reprocessing the stored data. Such loss or damage of Data media only covered when there is a loss or damage suffered under Section 1 material damage. However, loss of information and programming caused by magnetic fields is excluded.

Section 3 (Increased Cost of Working)

Additional expenses will arise out of the computer breakdown and arrangements for hiring computing facilities as well as additional increase in cost of working may become necessary. This coverage is only provided if Section 1 and Section 2 is covered.