Four insurance companies to pull out of the Irish Café and hospitality market

The Restaurants Association of Ireland was notified of the news that four insurance companies would be pulling out of the Irish Café and hospitality market by a broker on Wednesday.

Adrian Cummins, CEO of the Restaurants Association of Ireland stated:

“The Government need to take action on insurance reform, we are 18 months waiting on an insurance report that doesn’t even cover public liability insurance. Businesses, particularly small employers, cannot wait for reform. We need a Gardai Insurance reform unit ASAP. Creches received support yesterday from the Government despite Taoiseach Leo Varadkar saying on Wednesday morning that the Government could not support a for-profit sector.”

Speaking on how café’s will cope he said:

“The margins are very tight in the hospitality sector and while a price increase from €700 to €2,000 might seem small when compared with larger enterprises, It is actually very high when seen as a percentage of a cafe’s revenue. It also comes on top of increases in many other areas of the business. Some will simply not be able to cope with the increases.”

For reference, below is the information note the Restaurants Association of Ireland sent to members:

Our Insurance Partner have advised that a number of insurers have exited the Hospitality/Leisure market and may not be offering 2020 renewals which may impact the cost of insurance for members.

This may affect you if you have insurance with any of the following

•             AIG

•             Axis

•             Contessa

•             Surestone