Not sure if already covered, but an important point is what the pipe material is, and determining what failures could occur and what the failure mechanism is.
e.g. plastic pipe has a Youngs Mod orders of magnitude lower than steel, i.e. it stretches more, so stores more volume, also some types of joints can slip and pop off. The point above about estimating input energy is really pertinent.
Look for the weakest points (usually fittings, tappings etc).
PVC pipe can break into dagger like shards whereas steel pipe will crack or tear. I once replaced an exploded PVC elbow off the top of a vessel (we replaced the whole line with stainless), I think it was 6" Class E (rated for 15barg), the elbow had gone, all the adjoining pipe had burst, it had gone through the slate tile roof, we found bits of slate about 15m away on the road outside, the room itself was filled with these razor pointed shards of PVC... if anyone had been in there when it went they would have been perforated.
Testing plastic pipe is, in my experience, more risky than steel pipe for material failure.
As LittleInch noted above, most shops (including ours) have a dedicated test area that is fenced off. During testing the area is cleared. After a minimum half hour of stabilisation the pipe is inspected if deemed absolutely necessary (I try and avoid this), then the area cleared for the remainder of the test (typically 1 hour).
Every time when you prep for a test be thoroughly acquainted with the setup and walk it through at least twice, thinking 'what could go wrong'. Plan accordingly.
In the past I have covered old PVC lines with heavy duty tarp, weighted down with sandbags to protect local equipment and ensured the room was fully evacuated.
I have also done testing after hours when the shop was empty (if the pieces were too big for the test bay).
Don't forget your test gear and pipe is also part of the same system. Include this in your plan too.
Hiring site fencing panels to barrier off is cheap, if you do a lot of testing then buy them, is there any reason you can't barrier off at least during stabilisation? After an hour at pressure you can be pretty certain it won't suddenly explode (not absolutely certain, but the risk is much less as theoretically the system is in equilibrium).
I'm rambling a bit. To answer your question, I would erect barriers and specify exclusion zone to barrier. If you're in a room with other equipment, consider damage to the equipment or structure of room and take whatever measures you can. If inspectors want to crawl over the pipe looking for leaks then you have every right to refuse for their own safety. At end of day I have never had an inspector pass a pipe based on visual inspection for leaks, so only thing they should be interested in is if the calibrated pressure gauge is showing no pressure loss, and that is what goes on the certificate.