Twelve insurance firms facing 423 new business interruption claims

Twelve insurance companies have been put on notice that they face business interruption claims from 423 restaurants and bars that sell food, following last week's High Court ruling involving FBD Insurance.

In a landmark judgment, the judge found that a policy sold by FBD covered losses from four pubs which were sustained by having to close due to the global health emergency.

Adrian Cummins of the Restaurants Association of Ireland said the 12 insurance companies have been told they have seven days to make interim payments to the 423 businesses or face High Court action. He added that the RAI legal team will be analysing a further 140 cases next week to establish if they too could make a claim.

Of the 423 cases, he said the Association's legal advice was that they had a "bona fide business interruption claim". Last week's High Court actions were taken by three Dublin bars - Sinnotts, The Leopardstown Inn and Lemon and Duke - as well as Sean's Bar in Athlone. Their lawyers claimed that under their insurance policies they were entitled to have their losses caused by the pandemic covered.

However, FBD argued that the closures were not due to an outbreak of disease at the premises or within 25 miles of them. FBD said the closures happened because of a national situation that was not covered. The High Court disagreed with this interpretation.

Mr Justice Denis McDonald said cover was not lost where the closure was caused by nationwide outbreaks of disease, provided there was an outbreak within the 25 mile radius and that that outbreak was one of the causes of the closure.

Such outbreaks were a cause of the closure of the pubs announced by the Government on 15 March last year, he said. The fact that closures outside the 25 mile radius were also causes of the decision did not alter that conclusion.

Source: RTE