A mechanical malfunction exclusion in an Industrial Special Risks policy does not apply where the malfunction was caused by employee negligence rather than the innate condition of the machinery. The exclusion is directed to the characteristics of machinery — its propensity to malfunction, fail, or break down — and does not extend to malfunctions brought about by external causes such as human error. The question involves a degree of judgment, and temporal proximity of the human intervention to the malfunction may be relevant.
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