What Is Boiler & Pressure Vessel (BPV) Insurance?

BPV insurance provides protection against explosion, collapse, and accidental damage to insured boilers and pressure vessels.

These incidents are typically excluded from Fire and Machinery Breakdown policies, which means a dedicated BPV policy is required for compliance and operational resilience.

Foundation structures BPV programmes for:

• Manufacturing plants
• Food processing & bottling facilities
• Palm oil mills
• Chemical plants
• Glove & rubber factories
• Power generation and cogeneration facilities
• Industrial laundries
• Pharmaceuticals & precision production
• Any facility using steam or high-pressure systems

Why BPV Insurance Is Critical

Boilers and pressure vessels operate under high temperature and pressure, making failure both catastrophic and expensive. A single incident can result in:

• Damage to the boiler/vessel
• Structural damage to nearby property
• Injury to workers or contractors
• Production downtime
• Regulatory investigations
• Contractual penalties

In Malaysia, many facilities are also subject to DOSH (JKKP) regulations, requiring boilers and pressure vessels to be certified and inspected.

BPV insurance complements these statutory requirements by covering financial loss due to explosion or collapse.

What BPV Insurance Covers

BPV policies typically cover:

1. Explosion or Collapse of the Insured Item

Accidental explosion or mechanical failure causing:

• rupture
• implosion
• collapse

2. Damage to the Boiler / Vessel

Repair or replacement of:

• steam boilers
• water tube boilers
• fire tube boilers
• pressure vessels
• heat exchangers
• air receivers
• autoclaves
• sterilizers
• high-pressure cooking vessels

3. Damage to Surrounding Property

When explosion impacts:

• walls, floors, roofs
• production lines
• structural components
• machinery nearby

4. Third-Party Liability (where extended)

Cover for injury or property damage to:

• contractors
• visitors
• neighbouring tenants
• third parties

Who Needs BPV Insurance in Malaysia?

BPV insurance is essential for facilities that operate:

• Boilers (steam, thermal oil, biomass, LPG-fired, gas-fired)
• Pressure vessels (air receivers, autoclaves, CO₂ tanks, ammonia tanks)
• High-pressure processing equipment

Industries highly reliant on BPV systems include:

• Palm oil mills
• Glove manufacturers
• Food & beverage processing
• Packaging plants
• Pharmaceutical production
• Refining & chemical processing
• Textile and industrial laundries
• Plastic injection moulding plants

If the facility uses steam generation or compressed systems, BPV exposure exists.

Common BPV Incidents in Malaysian Plants

Boiler Tube Burst

Overheating or scaling caused tube rupture, damaging internal components and the boiler housing.

Triggered: Explosion/collapse section.

Pressure Vessel Rupture

Faulty relief valve caused overpressure, damaging vessel and nearby machinery.

Triggered: BPV explosion + surrounding property damage.

Electrical Failure Leading to Pressure Spike

Control panel malfunction resulted in sudden pressure increase.

Triggered: Explosion/collapse (if the resulting damage fits the definition).

Autoclave Door Failure

Locking mechanism failed during pressure cycle, damaging equipment and injuring an operator.

Triggered: BPV + liability extension (if purchased).

Steam Boiler Implosion

Vacuum condition created due to improper shutdown procedure causing collapse of boiler walls.

Triggered: Collapse extension.

How Foundation Supports Your BPV Programme

1. Technical BPV Assessment

We review equipment type, operating conditions, and safety controls to profile the risk accurately.

2. Preparing BPV Underwriting Submissions

We compile clear technical information (specs, inspection data, safety systems) for underwriters.

3. Structuring Coverage & Limits

We determine the right limits for the boiler/vessel and surrounding property, aligned with your operations.

4. Regular Endorsement Support

We update your policy when new equipment is added, decommissioned, or operational changes occur.

5. Claims & Investigation Support

We coordinate with insurers, loss adjusters, and DOSH where required to support smooth and timely claims resolution.

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