Insurance costs 'could close small restaurants'

Restaurants across the country are 'seriously considering' self-insuring, according to Brian Fallon of the famous Kilcullen restaurant bearing his name, writes Brian Byrne.

Speaking to the Irish Times before Christmas, he said that legal professionals who progress 'spurious claims' must take much of the blame for what is now a 'scary' situation for the hospitality sector next year.

The potential daily cost in court of €15,000 is leading insurance companies to settle 'even the most fraudulent of cases'. The restauranteur says insurance companies are more inclined to make an offer below that figure, 'regardless of the merits of the case'.

He said that his own restaurant's insurance bill had more than doubled in the last three and a half years. He had a claim some four years ago, but believes the increase in his premium goes beyond recovering that.

Noting that a number of insurance companies are getting out of covering the hospitality sector, he said that small operations which can't afford to self-insure by putting money aside for claims 'could easily go out of business'.

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