Probable Damage from Explosions

This problem had its genesis in the August, 1955, Whiting Fluid Hydroformer explosion and fire. The large loss resulting from this event demonstrated that fire losses in current refineries could be much larger than had previously been experienced. This circumstance gave rise to active discussions with the insurance companies as to whether future insurance should be issued and, if so, at what premium. The key question in regard to the future may be stated as: “If another major pressure vessel explodes, is a loss of the magnitude that resulted from the hydroformer explosion to be reasonably expected again; or was that loss a highly unusual extreme?” This question can also be phrased as: “What are the likely, and extreme, losses that might be expected from an explosion of another major unit?”