Rising business insurance costs burden pub owners
Almost one in four pub owners have had difficulty paying for business insurance, new research conducted by Vintners’ Federation of Ireland (VFI) members reveals.
The vast majority (88%) of publicans reported to VFI that their business insurance premium has increased over the past two years. Of those who dealt with rising premiums, 39% saw an increase of 20-40% and 12% had increases of over 40%.
Insurance costs have become one of the issues of “greatest concern to businesses” in Ireland, according to a report from the National Competitiveness Council earlier this year.
High legal costs might be to blame
Publicans reported that among all the costs associated with running a pub, business insurance was the expense of most vital concern. They identified business insurance as being of more concern than even commercial rates and TV subscriptions.
As for the origin of the rising prices, 44% of publicans cited the high legal costs involved in settling claims. Another 27% claimed increases were connected only with insurers’ pricing policies.
Commenting on the report, VFI CEO Padraig Cribben said, “Rising insurance premiums are yet another crippling cost publicans face in addition to a host of other costs. The reality of the situation is that these insurance costs are hampering the progress of small business owners and publicans across Ireland and it’s crucial the Government recognise this and offers its support.”