Electrical plant insurance

In 1854, the Manchester Steam Users Association was formed to help with the prevention of explosions in steam boilers and to find efficient methods in their use. To achieve this, the Association employed the first boiler inspectors, whose services were then made available to the Association s members. Within a short space of time, the members became convinced that insurance to cover the high cost of repair or replacement of damaged boilers was desirable, and this resulted in the first boiler insurance company (The Steam Boiler Assurance Company) being formed in 1858. The scope of the services for inspection and insurance later extended to include pressure vessels, steam engines, cranes, lifts and electrical plant, the insurance protection in each case being supported by an inspection service carried out by qualified engineer surveyors. 

Inspection by independent persons or bodies for safety purposes goes back to the middle of the nineteenth century. At that time, the focus of concern was the explosion of steam boilers, and this hazard was most prevalent in the textile industry. Consequently, a group of public-spirited individuals formed the Manchester Steam Users Association for the Prevention of Boiler Explosion. This body carried out boiler examinations and later added insurance as an inducement to the plant owners. By the beginning of the twentieth century steam and gas engines and electrical machines had been added, followed by lifts, cranes and hoisting machines. 

To minimize damage due to power outage, the Celanese Corporation in their plant at Newark, N.J., instituted a policy of always generating half its own power. Merck Company installed additional auxiliary steam power to insure constant refrigeration for its biochemicals at its West Point, Pa., plant. At Allied Chemical s phenol plant in Frankfort, Pa., electric devices on air compressors and pumps were replaced by steam-operated controls, and diesel generators were installed to maintain cooling water circulation. 19... 

Operating costs include the costs of raw materials, direct operating labor, labor supervision, maintenance, plant supplies, utilities (steam, gas, electricity, fuel), property taxes, and insurance. Sometimes certain operating cost components are directly expressed as a fraction of the capital investment cost. Table B.3 is a brief checklist... 

A 70,000 ton/year, 22,000,000 plant was started up in 2001. Since then, it has been operating at capacity for an average of 7200 h/year. It is staffed by 25 full-time production workers ( 32/h), two maintenance workers ( 35/h), and four shift supervisors ( 39/h). All labor rates include payroll and plant overhead. The process consumes 530 kilowatts of electricity ( 0.045/kWh), 50,000 gal/h of water ( 0.15/thousand gal), and 8.75 tons/h of feedstock ( 0.78/lb). Maintenance materials are estimated as equivalent to maintenance labor. Royalties amount to 4.20 per ton of product. The property taxes, insurance, and administrative charges total 5.2% of the total capital investment. Find the direct and indirect annual costs for the plant. 

Managements must consider these as a very essential system of the plant. Following should be carefully looked into while installing a fire fighting system (FFS), as proper compliance can reduce the premium to be paid to the insurance company besides meeting instructions from the statutory authorities like factory irrspectors, electrical inspectors etc. This investment is necessary for safety ofpersonnel and plant. 

Installation of electrical equipment is governed by various codes and standards. Compliance with the National Electrical Code (NEC), NFPA 70, is required by both 05HA and insurance companies. The plant owner must also... 

In some cases, the maintenance has to be done at particular times. Continuous process plants are an example. They are run for prolonged periods and then shut down only at predetermined intervals for maintenance and modification/upgrade purposes. Electrical components, vital to the operation of the plant, usually merit inspection on each such occasions and any parts, subject to wear deterioration, should be replaced prematurely to insure against failure operation. Brushes, contactor contacts and the oil of oil-immersed switchgear and control gear, are examples. 

There may well be considerable overlap between the responsibilities of the utility companies, the insurer and the authorities. For example, the electricity supply company may be the de facto or even the de jure authority for the plant electrical installation. In some countries the enforcement of regulations concerning boilers and lifting devices may in effect be left to the insurer. For this reason it may be advantageous for the EPCM contractor s authorities engineer also to be responsible for liaison with the insurer and the utility companies. 

The purpose of a focus review is to concentrate on a particular process or audit component that requires a specialized team that is experienced in the category of focus required. For example, the focus review inspection of an electrical power generating plant required a team of millwrights, pipefitters, electricians, plumbers, and other trades when a property fire protection insurance visit was made to the plant. 

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