Irish Examiner view: Insurance ruling a lifeline for desperate businesses

Lemon and Duke pub in Dublin, which was one of the four pubs that took the test case against FBD. Picture: Collins Photos

Buying insurance can be the epitome of a David-and-Goliath mismatch. Proving all too often that possession is nine-tenths of the law, insurance companies can have the whip hand when dealing with businesses and certainly when dealing with individuals. 

The stories of people not being covered for some eventuality they imagined they were protected from are myriad, almost too many to make them newsworthy even on the slowest of slow days.

Yesterday’s High Court ruling in favour of four pub owners is, however, more than newsworthy — it is also reassuring. 

The court found the publicans are entitled to be compensated by insurer FBD for the disruption to their businesses caused by the Covid-19 pandemic. 

FBD reported a €9m loss before tax for the six months to June, compared with €39m profit for the first half-year of 2019. 

Those figures are, on foot of this ruling, unlikely to improve in today’s circumstances so policyholders can anticipate an increase in premiums.

The ruling affects claims made by some 1,000 publicans or restaurant owners, many of whom are more than desperate as their businesses have been mothballed for almost a year. 

Many had reached the point where survival of their business was a very real question. 

This ruling may be — the details have yet to be finalised — the lifeline some of those businesses, and the communities they serve and enliven, depend on. 

And yes, it is always cheering when a David beats a Goliath.