Dundalk company Pelican fears they will "lose everything" due to insurance blow

Dundalk company Pelican Promotions fear they will be forced to close following a decision by one of the bouncy castle industry's main UK-based insurance providers decision to withdraw from the Irish market. 

Hundreds of other small firms across Ireland who supply bouncy castles are also in danger of losing their businesses after insurers started pulling the plugin here due to Ireland's compo culture. 

Gerry Frawley, of the Irish Inflatable Hirers Federation (IIHF), told the Irish Times that the decision was made by Axa XL, who is an underwriter of UK-based company Leisure Insure who announced they were ending their cover last week.   

It is a major blow to the industry as this company is said to be the main provider of the specialist insurance for bouncy castle operators in Ireland. 

Mr Frawley told the Irish Times that the reason for the insurance providers cancelling their coverage was that "they were afraid of the judicial system in this country... and our large awards.”

Speaking to The Irish Times, Pelican promotions owner Mandy Fee explained that the company, who employ up to 36 people and have a range of 224 bouncy castles and inflatables, told their staff last Thursday about their fears that they might have to close down.  

Ms Fee told the newspaper: "We have to close down. We can’t even sell off the business; who’s going to buy it? It’s not just a case of closing down; it’s a case of me losing everything." 

The family business owner also told how she had considered moving their business to Northern Ireland but was told by insurers that they would not cover their activities in the Republic.  

Ms Fee also told The Irish Times that she believed the high number of compensation payouts awarded in Ireland compared to the rest of Europe is to blame. 

Pelican revealed that bouncy castle hires accounted for about 60 per cent of their business - but their bookings for face-painters and entertainers at parties (which are booked out until next May) will also be affected by the insurance companies decision. 

The company now has two weeks to come up with a solution for their insurance issue before their current contract with Leisure Insure ends on August 13. 

However, Mandy has vowed that any current bookings made with the company will still be fulfilled. Ms Fee has secured the services of a number of other companies, in some cases Pelican's competitors, to ensure that there is no disruption for their customers whilst they fight to save the family business. 

Commenting on the matter Louth Fianna Fáil TD Declan Breathnach said:

“This week, Leisure Insurance UK has said it will not be renewing the insurance of any members of the Irish Inflatable Hirers Federation (IIHF). The IIHF represents 170 Bouncy Castle Hire and private inflatable hire businesses in the country.”

“What this effectively means is, Bouncing Castles and other inflatable businesses, will not be able to get Public liability insurance in Ireland. This will put hundreds of businesses that cater for parties, events and festivals out of business.”

“Public liability insurance has increased in recent years, with many small businesses being forced to close due to fraudulent and frivolous claims against them. This development could be the death knell for the inflatable hire industry in Ireland. I have written to Minister of State Michael D’Arcy and urged him to find a resolution that will allow those in these companies to remain insured, so they can continue to cater for events for years to come. “