Local publicans react after landmark court ruling orders FBD Insurance to pay out over Covid losses

The high court has ruled that four pub owners are entitled to be compensated by insurer FBD for the disruption their businesses suffered due to the Covid-19 pandemic.

In a landmark decision, the outcome of which affects claims made by more than 1,000 Irish pubs and restaurants, the judge found that a policy sold by FBD covered losses the pubs sustained by having to close due to the global health emergency.

The actions were taken by three Dublin bars - Sinnotts, The Leopardstown Inn and Lemon and Duke - as well as Sean's Bar in Athlone.

The dispute arose after the insurer refused to provide policyholders with cover after the pandemic resulted in the first temporary closure of businesses, in mid-March 2020.

In a lengthy and detailed judgment delivered today, the judge disagreed with FBD’s interpretation of its policy

Niall Farrelly the chairperson of the Meath Vintners Federation and owner of Farrelly’s Pub in Oldcastle is also an FBD policy holder. He commented that:

“It is great news and a relief. This means a lot to publicans we needed the win today. It has been very tough and there have been very harsh days.

“We are not sure of the outcome and what we are going to get out of it. Everyone’s policy is different that is why they couldn’t bring them all together they had to bring a test case first so you would be hoping that FBD insurance holders will be under the same bracket now.

“We don’t know what the whole outcome is going to be yet but it is positive news and it is good that we have a good organisation the Vintners you hadn’t have these test cases going ahead without them backing it.

“We have a great federation the whole way through this everyday there has been interaction with emails, phone calls text messages between every member and head office.”

Damien Clarke of Clarkes Bridge Street in Navan said:

“It is great news and I am delighted it is about time it was recognised that they should have been paid they shouldn’t have had to go to the high court to get it sorted.

“Unfortunately I’m not in that category, my insurance didn’t cover me but I am delighted for the ones who were covered it has been a long time coming.”

Damien describes the challenges faced by publicans throughout the pandemic:

“There is no end in sight that is the frustrating thing about it, we really thought 2021 would be the light at the end of the tunnel but it is not, it could be the summer by the time we are opened or longer.

“It has been very tough, I have been working since I was 16 in the pub game, it was the first Christmas since I was 16 that I was off.

“I didn’t think this lockdown was going to be as hard as it is it is almost like hospitality is a bad word at the minute.

“I don’t know if a lot of premises will survive this going forward we will be a year shut in March and beyond that it is going to be very difficult for a lot of businesses to stay afloat.”

Sinn Fein TD for Meath West Johnny Guirke has welcomed the High Court ruling.

Teachta Guirke Said:

“The decision taken by the judge in this case has eased a lot of stress and anxiety on many business owners who have been struggling with insurance companies since the beginning of this pandemic.

“The fact that the insurance company had to be taken to court for this judgment to be given is disgraceful and the need for the central bank to intervene in future cases by businesses must be prioritised. The government have completely failed to show any initiative in tackling this problem.

“In my constituency of Meath West, I have had local business owners in touch throughout the pandemic telling of stories about insurance companies and the difficulties they faced in following up claims with these companies.

“The policies taken out by all bar owners and local businesspeople are taken in good faith with insurance companies, and the fact that the Insurance company looked for loopholes in order not to pay out compensation is something that should be looked at by the central bank as breaches of contract are serious issues.

He went on to say:

“Anyone that thought their policy was not in order following dealings with insurance companies should revisit their paperwork and seek advice on whether they are entitled to claims under contractual agreements with insurers.”