What is an explosion? A case history of an investigation for the insurance industry

After a large property loss, the insured and insurers of a hydroelectric power plant in North America became embroiled in subrogation to determine if the event could be characterized as an explosion. The subject insurance policy provided coverage for explosions, but excluded mechanical breakdowns. Analysis by Exponent Failure Analysis Associates indicated that a consistent, cross-disciplinary definition for explosions can be extracted from published scientific literature, and that this incident was not an explosion because certain key requirements were missing during the accident. However, this investigation has highlighted the necessity for insurance companies and their insureds to better understand this term and thereby minimize future coverage disputes. This paper presents an analysis of this incident and describes the necessary characteristics of an explosion. (C) 2000 Elsevier Science Ltd. All rights reserved.