A leading liability insurance broker is advising companies to learn a good lesson from Rolls Royce.
Titan Liability Insurance is advising its clients to take a close look at how the Derby jet engine manufacturer handled the incident which began last November when a Qantas A380 Airbus airliner was forced to make an emergency landing at Singapore airport en route to Australia. An explosion had occurred in one of the four engines. No-one was injured in the incident.
The Qantas A380 superjumbo is fitted out with four huge Rolls Royce Trent 900 jet engines and the company later said a component had malfunctioned causing a small explosion.
Figures just released by the engine manufacturer showed that the cost of this incident is set at £56 million and this one-off figure (it is thought that they’ll be no more major costs related to any future claims) helped pre-tax profits fall to £702 million in 2010, as compared to nearly three billion the year before.
Chief Executive Officer of Titan Liability Insurance, Basil Tsapralis, said:
“Once the original explosion was laid at the door of Rolls Royce, you can imagine the senior management trying to work out the cost of the incident not only in terms of money, but also in terms of reputation and good standing in front of customers, suppliers and the flying public.
“It appears the company acted as decisively as any in allaying fears about the safety of the superjumbo and its engines, reporting which part was at fault quickly, making mechanical changes and settling claims. This will most likely become a business case history as to how a major company should cope with a potential disaster.”
Titan is one of the country’s largest liability insurance brokers and has a wide portfolio of clients.
For further information about Titan’s services, visit their website titan-insurance.com or call them on 0207 731 3700.