Explosion insurance covers a range of uncommon risks including damage from riots, aircraft accidents, and civil disobedience. It is increasingly applied to industries dealing with dry powders and can also apply to residential homeowners.
Blast insurance is an extension to a standard fire insurance policy that typically only covers damage caused by fire or any type of lightning damage. It is an extended coverage option that costs more and is designed to cover a range of what are considered unlikely or uncommon risks. Explosion insurance, therefore, does not specifically cover only explosions, but often includes protection against property damage caused by riots, aircraft accidents and vehicle damage, or cases of civil disobedience. Other more natural types of damage are also covered by explosion insurance and these include smoke damage from a fire and damage from wind, hail and more. However, one of the unique areas that this insurance is not specifically designed to cover is explosions caused by vessels under pressure, such as steam boilers, for which a separate type of insurance policy is required.
While explosion insurance is often targeted at commercial interests and industries, it can also apply to residential homeowners. Many home insurance policies will cover explosions in the category of fire losses, but this is not always the case, and the average home explosion is often estimated to cost tens of thousands of dollars (USD) in figures from 2011. Some common sources of home explosions that this insurance would cover include those from propane-fired grills, oil ovens, and aerosol cans.
In industrial settings, an extended coverage endorsement on explosion insurance policies must take into account the industrial setting and various government regulations designed to prevent explosions from occurring. In the United States, much of the Occupational Safety and Health Administration (OSHA) government regulation regarding potential explosions defers to the experience of industry groups such as the National Fire Protection Association (NFPA). This is because explosions in industrial settings can have very different causes and sources. The agricultural and food processing industries address fine dust explosion hazards in the storage and use of milled grains under NFPA 484 guideline and combustible metal dusts are regulated under NFPA 664 guideline. German guidelines such as Verein Deutscher Ingenieure ( VDI) 3673 which has been incorporated as per European Directive (EN) 14491, are also used internationally to regulate insurers’ underwriting procedures for explosion insurance cover in dusty and dusty environments.
Explosion property insurance loss that exists outside the scope of boiler explosion insurance has generally been limited to catastrophe-prone industries. These include natural gas and oil refining companies, which are ranked in the top ten types of industries most likely to experience periodic crises, but this insurance is increasingly being applied to industries dealing with dry powders of various types. It is estimated in the US as of 2005 that two to three significant industrial dust explosions occur every day. These types of explosions occur most frequently in grain silos and dust collection equipment, but are also common in facilities that perform any type of high-speed grinding and blending of fine powders.
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