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For the purposes of insurance an explosion is defined as the spontaneous ignition and expansion of air. It does not refer to the explosion of steam or high-pressure instruments.
Explosion cover protects you from any damage to your business as a result of an explosion, as defined above. It will cover the costs of rebuilding your office premises and replacing the equipment and furniture damaged by the explosion.
If the explosion results in a fire then any damage caused as a result of this fire would be covered under a fire policy.
An explosion policy does not cover the consequential losses incurred as a result of the interruption caused to your business. Only by taking out business interruption cover can you safeguard against these potentially enormous losses.
While an explosion is a very rare event it can have a devastating effect on a business. Should an explosion occur at your premises you would be protected against the costs of repairs to your premises and the replacement of damaged furniture and equipment.
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