Louth TD brings up cost of public liability insurance for tourism businesses in Dail

Issues with the cost of, and access to, public liability insurance for businesses in the tourism sector was selected as a Topical Issue for Deputy Ruairí Ó Murchú last week in Leinster House.

The Dundalk TD highlighted how while there had been a 5% reduction in motor insurance costs in the first six months of last year, it was not nearly enough and businesses seeking a renewal of public liability insurance had seen a 14% increase in prices.

Deputy Ó Murchú said: “There are huge numbers of SMEs and businesses in the entertainment, tourism and leisure sectors that cannot get insurance and cannot get premiums they are fit to pay. 

“We all know that there probably is not a company in Ireland that uses inflatables for its operations that can get the sort of insurance it requires. That is shocking. 

“I would have always thought that when an issue reached a critical point that the system, with all its flaws, would catch it. Sometimes there is a major level of drift, and this is not acceptable.

“Brendan Kenny, the CEO of Ireland's Association for Adventure Tourism, has spoken of 250 businesses that are threatened with closure. 

“We talk about the tourism sector and how we want to sell Ireland, but any closures will have a massive impact. We are already in disastrous waters and are heading into far worse waters. We really need to call a halt to what is going on.

“The buck stops with the Government, the Minister of State, the Minister for Finance and with others who deal with the insurance sector.

“A number of companies in my constituency have had issues too. There were also insurance issues at one stage with regard to childcare. We need to have an operational public liability insurance system that will work for SMEs or we are going to hit the wall’.

In response, Minister of State Jennifer Carroll McNeill said the reductions in insurance had been achieved, “because of the programme of reform that the Government has instituted regarding insurance: changing the law on perjury and fraud and changing the operating environment for personal injuries, particularly soft tissue and small injuries that were being overwhelmingly litigated in courts.”

She said: “Public liability remains outstanding, and that is a matter for the Department of Justice, which is bringing through the House at this time legislation to change the operating environment for public liability insurance

“Some of the companies are and some are waiting for the legislation and the new operating environment.”

Deputy Ó Murchú said: “I welcome any news regarding any new players coming into the market. Obviously, we need them to come into the market and then offer something that is fair and reasonable. 

“We really need to make sure we are not dealing with the madness of the issue I brought up before with the community centre in my own local area having to raise over €12,000 through GoFundMe. 

“At this time, there are a number of reforms being brought through. 

“We have reached an absolute crisis period, so we need to make sure that this done swiftly.

“After introducing the necessary reforms, followed by engagement, we then need something that will actually work for the SMEs. The tourism industry and all the other related sectors require it.”