Manufacturers Insurance – That Was Year That Was

Any company which produces goods and does not have a manufacturers policy in place would be wise to learn from 2010.

It was a year of car recalls and jet engine failures; surely enough to ensure that everyone in the sector checked their manufacturers insurance thoroughly.

Car manufacturers got a lot of stick during the year and one especially was pilloried for having to recall thousands of models for minor, but vitally important, modifications to their vehicles.

Then there was the Rolls-Royce jet engine incident which hit the media when one of the UK’s manufacturers engines spectacularly exploded during the early stages of a Qantas flight from Singapore. Bits of the engine were found over neighbouring islands and Rolls-Royce faced ignominy as the media had a field day over what it might mean for the company and its customer airlines. Indeed, the Trent 900 engine is used to power the A380 Superjumbo and a number of airlines chose to keep their valuable aircraft on the ground rather than risk further explosions.

As it was, the affair quickly petered out and the media circus quickly got bored when Rolls-Royce announced that the fault apparently lay with an engine part that caused the trouble. No doubt all the parts have been replaced and Rolls-Royce is once again building up customer trust, despite the number of legal claims for loss of business that might crop up in the courts.

But it just goes to show that when it comes to producing goods and then sending to others, manufacturers insurance is a very good thing indeed.