‘We are dismayed’: Limerick publican slams insurance firms

THE local Vintners Federation (VFI) representative has vowed the group will fight “tooth and nail” to ensure publicans get insurance payouts during their enforced closure.

Councillor Jerry O’Dea was speaking out after it emerged some insurers are refusing to honour the business interruption cover for pubs forced to close due to coronavirus.

Pubs across Ireland acted on foot of a government directive last Sunday to cease trading due to the aggressive spread of Covid-19.

In doing so, they missed out on a huge windfall from the St Patrick’s Day holiday.

However, Allianz and FBD say they will not be providing business interruption cover, which is in place for closures of this nature.

Cllr O’Dea said: “We are dismayed the insurance companies at such a bad time of national crisis has taken this approach. We were instructed to close by government, the directive was issued by the National Emergency Team, and we would expect that any insurance policy we hold would be honoured.”

He said he’s “shocked” at this approach, adding: “A lot of our overheads and costs are fixed, be they bank loans or insurance premia, or television subscriptions. The insurance companies are behaving disgraefully and we will fight for our association members tooth and nail to ensure they are paid and they can continue to provide employment when we do re-open.”

Fianna Fail TD Niall Collins also raised the matter in Dail Eireann this evening.

Donall O’Keeffe, the chief executive of the Licensed Vintners Association added that many of its members had hoped to use the payments they would have received on their insurance to pay their staff who have effectively had to take unpaid leave.

He added: “At a time of national crisis, with the pub sector on its knees, these insurers have spurned us in our time of need and are refusing to play their part in this emergency situation. Given the tremendous strain that the Exchequer finances will be coming under this seems like the insurers are turning their backs on not just the pub sector, but the entire State.”