Firm Agrees Queen Mary Needs Repairs : Attraction: Insurance consultant concurs with earlier report that millions should be spent to make Long Beach vessel safe.

An insurance consultant Monday concurred with an earlier opinion that the Queen Mary needs millions of dollars in immediate repairs and improvements to make it safe for tourists and employees.

The risk management division of consultant Towers Perrin also recommended that the city of Long Beach or the vessel’s operator carry at least $20 million of coverage to protect against huge losses should there be a disaster on the ocean liner.

That sum is twice as much coverage as the current operator, the Walt Disney Co., is required to carry, the report said.

Disney spokeswoman Jennifer Blazey said the entertainment firm carries insurance “above and beyond” what is required by the Harbor Department, but she declined to say exactly how much.

Toni Whitesell, the Harbor Department’s director of administration, said the port’s general insurance policy may cover some losses beyond Disney’s coverage.

Long Beach Harbor officials, who have jurisdiction over the Queen Mary, have not finished studying the Towers Perrin report and did not know how the recommended repairs or insurance requirements would affect the ship’s future.

Disney, which has operated the money-losing tourist attraction since 1988, will end its lease agreement with the city at the end of this year.

The Harbor Department is seeking a new operator or buyer for the ship. Monday was the deadline for such proposals. Harbor officials planned to release information on the proposals today.

The expense of repairing and insuring the ship could discourage potential operators, said Alex Bellehumeur, vice president of the Board of Harbor Commissioners, which will decide the Queen Mary’s fate.

The needed repairs and insurance coverage for the Queen Mary would be a point of negotiation with any prospective operator or buyer, officials said.

The Towers Perrin report recommended $3.6 million in immediate work. That includes the restoration of the Queen Mary’s bulkheads to reduce the likelihood that a leak in the ship’s rusted hull would cause the vessel to sink in the shallow spot where it is moored.

The bulkheads, which divide a ship’s hull into water-tight compartments, were removed more than two decades ago when the Queen Mary was converted to a tourist attraction.

“An undetected leak could lead to a catastrophic failure and cause the ship to flood and sink,” the report said.

The consultant also recommended:

* Removing potentially dangerous asbestos.

* Repairs to the leaking fire-fighting system.

* Replacing the aging fire detection system.

* Installing a new public address system that could be used in an emergency.

* Replacing or adding signs throughout the ship to clearly mark escape routes and exits.

“The most significant potential for injury or loss of life involves panic among invitees triggered by fire, structural failure,” or sinking, the report said.

Towers Perrin also recommended another $10.2 million in repairs and maintenance in the next five years, including dry-docking the ship to thoroughly inspect its hull.

The Towers Perrin study condensed the recommendations contained in a report released last month by Rados International Corp., a naval architectural and marine engineering firm.

Rados recommended $6 million in immediate repairs and another $21 million in repairs and maintenance within five years. Rados noted that the Queen Mary could sink in as little as 11 feet of water if portions of its rusty hull were to fail, possibly trapping employees and tourists on the ship’s lower decks.

Robert G. Rados, a marine engineer who oversaw Rados International’s assessment of the vessel, could not be reached Monday for comment.

Rados elaborated on the findings of harbor engineer Edward C. Bermender, who had noted extensive corrosion in 1990.

City officials have said they do not deem the danger immediate.

Disney has maintained that the ship is safe.