Babcock & Wilcox Co.: Asbestos History & Liability

About Babcock & Wilcox & Asbestos

Founded in 1867 by engineers George Herman Babcock and Stephen Wilcox, Babcock & Wilcox grew from a small Providence, Rhode Island workshop into one of the most important industrial equipment manufacturers in American history. The company's foundational innovation — a patented water-tube boiler design that allowed steam generation at higher pressures and greater efficiencies than earlier fire-tube designs — became the industry standard for high-capacity steam production in industrial, utility, and naval applications. By the early twentieth century, B&W boilers were powering factories, generating electricity at utility stations across the country, and driving the propulsion machinery of United States Navy warships in two world wars.

Asbestos was not merely incidental to B&W's products — it was structurally integral to every major boiler system the company produced. A large industrial or naval boiler operates at temperatures that would be catastrophically dangerous without effective insulation: the boiler itself, the steam drums, the superheaters, and the miles of high-pressure piping connecting the boiler to turbines and auxiliary systems all require insulation against heat loss and protection for nearby workers. In the first half of the twentieth century, and for much of the second half, asbestos-based insulation was the material of choice for all these applications. Asbestos block insulation, asbestos pipe covering, asbestos rope packing, asbestos gaskets, and asbestos-containing refractory cements were standard components of every B&W boiler installation delivered from the factory.

The scale of B&W's production — and therefore the scale of asbestos exposure its products created — was enormous. During World War II alone, B&W produced hundreds of boilers for warships being constructed at breakneck pace in shipyards across the country. Each of those boilers, and the miles of steam piping connected to them, was wrapped in asbestos insulation applied by workers who had no way of knowing that the material they handled would eventually kill them or their colleagues. At B&W's own manufacturing facilities — principally the sprawling Barberton, Ohio works, but also plants in Mount Vernon, Indiana and other locations — insulation application was done in-house, creating additional exposure populations beyond the downstream shipyard workers and power plant tradespeople who received finished equipment.

The Barberton, Ohio manufacturing complex was among the most significant asbestos exposure sites in the industrial Midwest. Thousands of workers who spent careers at the Barberton works — fabricating, assembling, and insulating boiler components in large enclosed production buildings — accumulated substantial asbestos exposures over decades of employment. Many subsequently developed mesothelioma, asbestosis, and other asbestos-related diseases, and their claims form a substantial portion of the B&W trust's liability today.

By the late 1970s and through the 1980s, the mounting tide of personal injury lawsuits filed by sick workers and their families began to threaten B&W's financial stability. Claims from Navy veterans, power plant workers, and B&W's own former employees arrived in the tens of thousands. The company's exposure to asbestos litigation was particularly broad because B&W products had been deployed in such a wide range of settings — naval vessels, utility power plants, industrial facilities, and the company's own factories — creating a correspondingly wide claimant population. Legal costs and liability reserves consumed increasing fractions of the company's capital. The resolution of those obligations through bankruptcy reorganization and the establishment of the B&W Settlement Trust was ultimately necessary to preserve the company's continuing operations while providing a mechanism to compensate past victims.

Products & Exposure

Asbestos exposure associated with Babcock & Wilcox products arose from multiple categories of asbestos-containing materials incorporated into boiler systems and related equipment. The table below identifies the major product types, their asbestos content, the mechanisms by which exposure occurred, and the primary populations affected.

Because B&W boilers and the asbestos-containing materials associated with them were installed across such a broad range of environments — naval vessels, electric generating stations, industrial plants, hospitals, and large commercial buildings — the population of workers with potential exposure to B&W-related asbestos materials is correspondingly large. Importantly, many of those workers were not B&W employees and may not immediately think of B&W when recalling their asbestos exposure history. An asbestos attorney can help reconstruct the exposure history and identify B&W products among the potential defendants.

Naval & Shipyard Exposure: B&W Boilers on U.S. Navy Ships

Perhaps the most significant asbestos exposure population associated with Babcock & Wilcox products is the community of U.S. Navy veterans and shipyard workers who encountered B&W boilers aboard naval vessels. From the early twentieth century through the latter half of the Cold War, Babcock & Wilcox was a primary supplier of steam-generating boilers for U.S. Navy warships, including destroyers, cruisers, aircraft carriers, and auxiliary vessels, as well as for shipbuilding programs conducted at privately operated shipyards.

Navy vessels equipped with B&W boilers typically had their engineering spaces — the compartments housing the boilers and associated machinery — thoroughly insulated with asbestos-containing products. The boilers themselves were covered in asbestos block insulation. The steam pipes that carried superheated steam from the boilers to the turbines and throughout the ship were wrapped in asbestos pipe covering. Valves, flanges, and fittings were packed with asbestos rope packing and sealed with asbestos-containing gaskets. In many cases, fire-resistant bulkheads and overhead insulation throughout the engineering spaces also contained asbestos materials from other manufacturers, creating a heavily contaminated environment.

For Navy sailors who served in these engineering spaces — machinist's mates, boiler technicians, enginemen, and damage control personnel — asbestos exposure was a constant feature of daily service life. During routine operations, the vibration of the ship's propulsion system and the heat cycling of the boiler caused asbestos insulation to shed fibers that settled throughout the engineering spaces. During maintenance and repair operations, insulation was regularly removed and replaced, creating acute high-exposure episodes. Sailors who served multiple tours on ships with B&W boilers accumulated significant lifetime asbestos doses from this source alone — often combined with additional exposures from working in other spaces aboard ship where asbestos was also present.

Shipyard workers — the civilian craftspeople who built, overhauled, and repaired Navy ships at facilities including Newport News Shipbuilding, Bath Iron Works, the Portsmouth Naval Shipyard, Puget Sound Naval Shipyard, and the Philadelphia Naval Shipyard — faced some of the highest occupational asbestos concentrations of any industry group in American history. Installing new B&W boilers and their associated insulation in a partially constructed vessel, or ripping out old insulation during a major overhaul, released enormous quantities of asbestos fibers into confined shipyard spaces with limited ventilation. Epidemiological studies of shipyard workers have consistently documented mesothelioma incidence rates among the highest ever recorded for any occupational group, and B&W boiler insulation is among the frequently identified sources in those cases.

The legal significance of B&W's Navy supply role is that it creates a well-documented paper trail connecting the company's products to specific vessels, shipyards, and service periods. Naval records, ship's blueprints, and maintenance logs can identify which vessels were equipped with B&W boilers, and Navy personnel records document which sailors served in those vessels' engineering spaces. This documentation supports the exposure element of asbestos claims in ways that can be harder to establish for workers in other industries where records are less systematic or comprehensive.

Trust Fund & Legal Status

The weight of asbestos personal injury litigation against Babcock & Wilcox eventually required the company to seek bankruptcy protection and establish a settlement trust to manage the ongoing flow of claims. The Babcock & Wilcox Settlement Trust was created to provide a systematic compensation mechanism for individuals who suffered asbestos-related injuries attributable to their exposure to B&W products or operations at B&W manufacturing facilities.

Payment Percentage

The B&W Settlement Trust currently pays approximately 4.7% of the full liquidated value of approved asbestos claims. This is a relatively low payment percentage, reflecting the large volume of claims against the trust relative to its available assets. In practical terms, the B&W trust is an important component of a comprehensive compensation strategy for mesothelioma patients and other asbestos disease victims, but it is unlikely to provide adequate recovery on its own. The most successful asbestos claimants typically receive compensation from multiple sources simultaneously — multiple trust funds, direct tort settlements against solvent defendants, and where applicable, VA benefits — to maximize total recovery.

Multi-Defendant Strategy

Workers who were exposed to asbestos through B&W boiler systems were almost certainly also exposed to asbestos from many other manufacturers' products. The pipe covering on the steam lines connected to B&W boilers may have been made by Armstrong World Industries, Owens Corning, or Johns-Manville. The gaskets may have been manufactured by Garlock, John Crane, or Flexitallic. The refractory materials might have come from A.P. Green or Kaiser Refractories. In a shipyard setting, dozens of other products — deck insulation, bulkhead coverings, pipe hangers, electrical insulation — added to the cumulative asbestos burden.

An experienced mesothelioma attorney will conduct a thorough exposure history to identify all of the responsible manufacturers and product suppliers across an entire career, then pursue claims against each applicable trust and litigation defendant. This multi-defendant approach can increase total compensation by orders of magnitude compared to filing against a single trust. Given the B&W trust's 4.7% payment rate, the contribution from other defendants is particularly important.

Disease Categories and Documentation

The B&W trust accepts claims in multiple disease categories. Mesothelioma — the cancer caused almost exclusively by asbestos exposure — receives the highest scheduled values and the most expedited processing. Lung cancer with confirmed asbestos exposure, asbestosis, and pleural disease are also recognized categories. Claimants must provide medical records confirming the diagnosis, and must document their exposure to B&W products through employment records, military service records, union records, co-worker testimony, or other supporting evidence. Experienced asbestos attorneys know precisely what documentary package the trust requires and can prepare submissions that minimize delays and maximize approval rates.

BWX Technologies & Corporate Succession

In 2015, the commercial power operations of Babcock & Wilcox were restructured, and BWX Technologies emerged as a separate publicly traded company focused on nuclear components and government services. The historical asbestos liabilities of the commercial boiler and industrial operations are handled through the B&W Settlement Trust and are not the direct responsibility of BWX Technologies as it currently operates. Claimants should work with an asbestos attorney who understands the corporate succession structure and can direct claims to the appropriate legal entity or trust for the specific type of exposure and time period involved.

Frequently Asked Questions

• Who was exposed to asbestos from Babcock & Wilcox boilers? ▼

  The primary exposure populations associated with B&W asbestos products include: U.S. Navy sailors who served in the engine and boiler rooms of ships equipped with B&W boilers; civilian shipyard workers who installed or overhauled B&W naval boilers at shipbuilding and repair facilities; electric utility workers and boilermakers at power plants equipped with B&W steam generators; workers at B&W's own manufacturing facilities in Barberton, Ohio and Mount Vernon, Indiana who fabricated and insulated boiler components; and industrial maintenance workers who repaired B&W equipment at chemical plants, refineries, paper mills, and other heavy industrial facilities where B&W boilers were in service.

  Workers at adjacent trades who did not directly install or remove B&W boiler insulation were also exposed. Electricians, pipe welders, laborers, and other craftspeople who worked in the same spaces while insulators were disturbing asbestos materials inhaled fibers from ambient air contamination. These bystander exposures are well-documented in asbestos litigation and are legally compensable.

• What is the current B&W trust payment percentage? ▼

  The Babcock & Wilcox Settlement Trust currently pays approximately 4.7% of the full liquidated value of approved asbestos claims. Payment percentages at asbestos trusts can change over time as the trust updates its projections of total claims versus available assets. Mesothelioma claims are typically assigned the highest base values and receive the highest absolute dollar amounts under the trust's compensation schedule, even at the 4.7% rate.

  Because the B&W payment percentage is relatively low, maximizing total recovery requires pursuing all available defendants, not just the B&W trust. Most mesothelioma patients were exposed to asbestos from many different manufacturers' products over their working lives, and each of those manufacturers may have a separate trust fund or litigation exposure. An experienced asbestos attorney will identify all applicable claims and pursue them simultaneously to maximize aggregate compensation.

• Can U.S. Navy veterans file B&W asbestos claims? ▼

  Yes. Navy veterans who served aboard ships equipped with B&W boilers — particularly in engineering billets that placed them in or near boiler rooms — have strong potential B&W trust claims. Naval records including ship assignment histories, billet records, and vessel documentation can establish the exposure connection. Navy vessel registries and ship configuration records can confirm which ships carried B&W boiler equipment and during which service periods.

  Many asbestos attorneys have deep experience with Navy veteran claims and maintain databases of which vessels carried which manufacturers' equipment. Veterans should be aware that filing an asbestos legal claim is entirely separate from — and does not affect — VA disability benefits. Both forms of compensation can be pursued simultaneously. A combined legal and VA benefits strategy may substantially increase total lifetime compensation for a Navy veteran with mesothelioma.

• Is BWX Technologies the same as Babcock & Wilcox for asbestos claims? ▼

  BWX Technologies is a successor entity to certain B&W operations, particularly nuclear components manufacturing and government/defense services. The company was separated from Babcock & Wilcox's commercial power operations in a 2015 restructuring. The historical asbestos liabilities of the Babcock & Wilcox Company's commercial boiler and industrial divisions are handled through the B&W Settlement Trust and are not the direct legal responsibility of BWX Technologies as it currently operates.

  For claimants attempting to understand the B&W corporate structure and identify the right entity or trust for their specific situation, consulting an experienced asbestos attorney is the most efficient path. The attorney will research the corporate succession, identify the applicable trust, and ensure the claim is directed to the correct defendant based on the type of exposure and the time period involved.

• How do I start the B&W asbestos trust claims process? ▼

  The most effective first step is consulting with an asbestos attorney who handles trust fund claims. The attorney will review your work history and exposure circumstances, confirm the connection to B&W products, assess your medical diagnosis, and determine which trust funds and litigation defendants are appropriate for your situation. The attorney will then gather the necessary documentation — employment records, military service records, medical records including pathology reports and imaging — and prepare and submit complete claim packages on your behalf.

  Most asbestos attorneys handle these cases on a pure contingency basis: there is no charge unless you receive compensation, and initial consultations are free. Statutes of limitations in most states restrict the filing window to two to three years from the date of diagnosis, so anyone recently diagnosed with mesothelioma or another asbestos-related disease should contact an attorney as promptly as possible to protect their right to full compensation.