Joint Loss Agreements - Archive

Joint Loss Agreements—Archived Article

March, 2000

Gas Combustion Explosionvs. Pressure Vessel Explosion

Introduction

The Insurance Services Office (ISO) boiler and machinery coverage form (BM 00 25 06 95) is designed to dovetail with ISO’s building and personal property coverage form (CP 00 10) and its causes of loss forms (CP 10 10 06 95 basic causes of loss form; CP 10 20 06 95, broad causes of loss form; and CP 10 30 06 95, special causes of loss form). The property causes of loss forms exclude coverage provided by the boiler and machinery form and they cover perils excluded by the boiler and machinery form. For example, the property forms exclude explosion of steam boilers, which are covered by the boiler and machinery form. On the other hand, the property forms cover the explosion of gasses in the furnace of a boiler, an excluded peril on the boiler and machinery form.

The Peril of Explosion

The description of the named peril explosion in the basic and broad property causes of loss forms and the exclusion of steam boiler explosion in the same forms set forth a distinction that can be drawn between the commercial property and boiler and machinery forms.