I was assured policy would cover Covid-19, says boss of high-profile Dublin bar

Noel Anderson said he had asked "very direct questions" and sought "very direct answers" from FBD's representatives over Covid-19 coverage.

Noel Anderson of the Licensed Vintners Association pictured leaving the Four Courts in Dublin today after giving evidence in a High Court action. Picture: Collins Courts

The managing director of Dublin City centre bar/restaurant Lemon & Duke has told the High Court he was given direct assurances from FBD that its policy covered business disruption losses caused by Covid-19.

Noel Anderson, who is also a vice-chairperson of the Licenced Vintners Association, told the court he specifically switched insurers to FBD in early March of this year after he became very concerned about the virus.

Despite being initially being "thrilled" and "relieved" to get insurance which he thought would cover Covid-19, he said he was left "outraged" after FBD informed him last April that the policy did not cover business losses caused by the pandemic.

Mr Anderson was giving evidence before Mr Justice Denis McDonald the second week of tests cases brought by four pubs arising out of FBD's refusal to indemnify them for the disruption to their businesses due to Covid-19.

In reply to his counsel, Michael Cush SC, Mr Anderson said he first became concerned about the impact of Covid-19 in mid-February. He said that others believed he was overreacting, was "stone mad", and that there was "a million to one chance the pubs would be closed".

He said that people win the Lotto at big odds, and made enquiries to see if the premises' previous insurance policy would cover losses in the event of the business being closed due to Covid-19.

When he discovered the previous policy did not cover Covid-19, said a fellow publican told him FBD's policy appeared to provide coverage for Covid-19, resulting in him making contact with the insurer.

Mr Anderson, whose partners in the bar/restaurant include Irish rugby players Sean O'Brien, brothers Dave and Rob Kearney, and Jamie Heaslip, said he spoke to FBD representatives in early March and was told "that FBD were covering coronavirus" for pubs.

He said he was very clear what he wanted cover for wages, losses, and rent in the result of a lockdown, and FBD were under "no misapprehension" as to what he wanted.

After receiving assurances that the policy covered business disruption caused by Covid-19, he moved the businesses' insurance to FBD, which he said was a relief after "suffering sleepless nights".

The policy in relation to the Lemon & Duke, which is currently trading as a restaurant only, covered losses up to €3.2m, he said.

Stay tuned... #lemonandduke pic.twitter.com/cGft36CnmO

— Lemon & Duke (@lemonandduke) October 12, 2020

The Government he said made a decision to close the pubs on March 15.

A meeting took place between representatives of the LVA with senior FBD staff, including its CEO Fiona Muldoon on St Patrick's Day.

In April he said he was formally informed by FBD that it would not provide cover. He was astonished by this, and felt that the insurer's attitude was "disingenuous, and completely dishonourable".

Under cross-examination from Remy Farrell SC for FBD, Mr Anderson said that getting assurances that the insurance policy covered any closure arising out of Covid-19 was always to fore of his mind when he discussed becoming a customer of FBD.

Mr Anderson said he had asked "very direct questions" and sought "very direct answers" from FBD's representatives over Covid-19 coverage when he was considering taking out insurance with it.

"I just want what is rightfully owed," he said.

Also giving evidence was Christopher Kelly, whose group of companies owns 11 pubs employing 300 people, 90% of whom he said had to be laid off due to the impact of the pandemic.

In reply to his counsel, James Doherty SC, Mr Kelly said his businesses had, over many years, paid FBD €3m for insurance and had only made claims of approximately €300,000.

He said he had a good relationship with them, and had declined to switch insurers because the other policies did not cover for things including the outbreak of disease.

He said that as far as he was concerned, the plain English used and the words contained in the policy meant his businesses were covered for the losses caused by the impact of Covid-19.

As all the criteria had been met, he said FBD should have paid out, but did not, resulting in legal proceedings. 

"We should not have to be here today," he said.

The Lemon & Duke pub

He also spoke of his concerns for his employees within the group, adding that he had one employee with young children come to him "in tears" over fears that they could not pay their mortgage.

The actions have been taken by Dublin bars Aberken, trading as Sinnotts Bar; Hyper Trust Ltd, trading as The Leopardstown Inn, and Inn on Hibernian Way Ltd trading as Lemon & Duke.

The fourth action is by Leinster Overview Concepts Ltd, which trades as Sean's Bar, in Athlone, Co Westmeath.

They claim that under their policies of insurance taken out with FBD, they are entitled to have their consequential losses covered by what they claim is an insurable risk.

They also claim that the insurer is in breach of contract.

The publicans claim the insurance policies taken out with FBD have a clause that states the pub owners will be indemnified if their premises are closed by order of the local or Government authority if there are "outbreaks of contagious or infectious diseases on the premises or within 25 miles of same".

FBD disputes that claim, and says the closures did not occur as a result of an outbreak of disease at the premises or areas where the pubs are located.

The hearing continues.