Pressure is mounting on FBD insurers after one of Ireland’s most famous pubs became the latest business to issue High Court proceedings against the company.
ean’s Bar in Athlone, Co Westmeath is taking action against FBD for its refusal to pay business interruption claims during the Covid-19 crisis.
The Dublin Lemon & Duke bar, which is co-owner of Irish rugby stars Sean O’Brien, Jamie Heaslip and Rob and Dave Kearney, also launched legal proceedings against the insurer this week.
Additionally, a high-ranking publican contacted the company after FBD provided a written statement earlier this year, seen by Independent.ie, guaranteeing that its policy covered the coronavirus. However, now he refuses to pay.
Meanwhile, the owners of a family-run bar and restaurant have filed an official complaint with the financial ombudsman after FBD refused to pay a business interruption claim, despite its policy explicitly covering infectious diseases.
Patrick and Aileen Hanley, who run the Strand Cahore, at Cahore Point, Co Wexford, received legal advice that their policy is “sound” and should entitle them to compensation.
Speaking to Independent.ie, Mr. Hanley said he was informed by FBD that it would be “unreasonable” to expect the company to pay for business interruption claims related to Covid-19.
“The weird thing is, they have exclusions in their policies, like you can’t claim in the event of a terrorist attack or sonic boom, but there’s no mention of a pandemic that I thought was much more likely than a supersonic boom.
“We pay our premium, we are covered in our policy, and yet they tell us we are not reasonable.”
“They say that we are closed due to social distancing and not Covid-19. Social distancing is a side effect of Covid-19, not the cause of the shutdown. ”
Hanley and his wife have been running the award-winning bar and restaurant since 2018.
The couple are now operating a hatch-to-go service on the premises to try to keep the business alive.
“It may be impossible for us to return.
“We are in a bad place as a result of the FBD situation,” he added.
FBD did not respond to a request for comment.
Meanwhile, the Alliance for Insurance Reform has confirmed that Drury Porter Novelli, the company that manages its public relations, has notified the group that it will no longer do so “due to a conflict of interest” as it is now managing relations for FBD.
Peter Boland, director of the Alliance’s Insurance Reform, said: “We take note of the development, but FBD has a serious case to answer with many of our members and it would be better to resolve the situation quickly and fairly, since no amount public relations and advertising will change that.
“Drury is leaving us on good terms, but they were no longer able to work with us due to a conflict of interest.”
Drury Porter Novelli said he cannot discuss customer deals when asked for comment.
