The Chair of Clare VFI has expressed hope that other insurers will offer some measure of compensation to publicans following a landmark High Court ruling.
FBD will have to pay out for losses incurred by four pub owners who were foced to close their doors on account of the pandemic, after the High Court ruled in favour of them last week
The decision impacts over a thousand others with similar policies.
FBD has committed to paying out what it’s described as “valid claims” to its public house insurance customers, for financial losses incurred as a result of pandemic related closures.
It follows landmark legal action taken by just four pubs.
At the heart of the case was whether the business interruption policy covered nationwide outbreaks of disease. FBD claimed it only covered localised outbreaks, but the High Court disagreed.
The total amount to be paid out isn’t yet known but in a statement after the ruling FBD said it expects it to be “well within the range of its considered financial outcomes”.
Up to 1,300 others have similar policies and were awaiting the decision before taking their own cases, but Founder of the Save Irish Pubs campaign, Solicitor and Publican, Brian Winters says a lot of work still has to be done.
The Vintners Federation of Ireland is holding a meeting today ahead of briefing its members.
The Chair of Clare VFI has commended the four publicans involved for taking action on behalf of the wider business community.
Ennis Publican Darragh McAllister believes other insurers should now pay out and offer some measure of compensation for businesses.
Restaurants are giving insurers a week to pay out on business interruption cover following the High Court ruling last week.
The Restaurants’ Association’s legal team say the judgment secured against FBD on Friday applies to about a third of the policies they’ve reviewed.
The lobby group says it has looked at around 600 of its member’s policies, and is urging other restaurateurs to examine their documentation with a view to pressing a claim.
Restaurants’ Association CEO Adrian Cummins says many businesses will collapse without urgent support.
