Brokers Ireland Welcome High Court Ruling on Business Interruption Insurance

Fri Feb 5 2021

Friday 5th February, 2021     


Brokers Ireland has welcomed today’s High Court decision that four hospitality sector businesses are entitled to be compensated by Insurer FBD for business disruption suffered arising from the Covid-19 pandemic.

Cathie Shannon, Director of General Insurance at Brokers Ireland said: “The clarity the court has now brought to the issue under this landmark case, that clearly has implications for other businesses with similar policies, is very welcome. While the issue of quantifying the losses remains to be determined by the Court later this month, it does hopefully mean that a final resolution is within striking distance,” she said.

It is to be hoped that all who have relevant insurance cover will receive their payouts without undue delay. Insurers have an obligation to abide by the provisions of the Consumer Protection Code in respect of their treatment of businesses that are covered by the Code, as well as the CBI’s business interruption framework and insurers should consider these when deciding how best to proceed. It will likely mean that some businesses will be viable, that without this decision might not otherwise be.

“While no one could foresee the devastation caused by the pandemic, nonetheless there is an element of David and Goliath here. While no one would wish the giant Goliath any harm, the fact of the matter is generally he has more power in his armoury when attacked than does David, such as offloading some of the risk by way of reinsurance, and this goes to the heart of insurance. However, unfortunately, into the future, the pandemic may result in tighter insurance conditions, and wariness about such cover,” concluded Cathie.


Cathie Shannon, Director of General Services, Brokers Ireland 

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