‘Half of play centre sat risk of closure because of 850pc hikes in insurance’

HALF the play centres in the State are at risk of closure because of an insurance crisis.

Premiums have more than doubled for some operators, with others unable to get a quote if they have had claims made against them.

A new group made up of the operators of 86 play centres, facilities for special needs children and pet farms has been formed to lobby for radical reform to deal with the claims culture operators say is strangling their businesses.

The group blames false and exaggerated claims being settled by insurance companies for the crisis.

Businesswoman Linda Murray, who runs the Huckleberry’s Den in Navan, Co Meath, is heading up the new group. She said six play centres had closed in the past two months, with two more threatened due to unsustainable insurance rises, and the failure to even get a quote in some cases.

“Half of play centres in the country will go soon if the insurance situation does not dramatically improve,” she said.

Crisis: Linda Murray with her children Elle (4) and Savannah (3) at her play centre in Navan, Co Meath, which she may have to close. PHOTO: STEVE HUMPHREYS

Ms Murray is facing closing her facility in Meath with the loss of 12 jobs.

“I have one claim pending and I cannot get insurance,” Ms Murray said.

She has had two claims in five years, but has seen her premium jump from €2,500 to €16,500. But she is now being refused cover.

“Play and activity centres in Ireland cannot get insurance here and have not been able to for years. We have really only one option and it’s a company called AxaXL in the UK,” she added.

Ms Murray also sits on the national board of directors of Alliance for Insurance Reform, which has been pressuring the Government to do more to deal with the issue.

“Our centres are seeing 100pc increases in the past year alone, and 850pc increases over a five-year period. Exaggerated claims are the problem. They are being ‘settled’ by insurance companies as they see it as more economical than going to court,” she said.

Ms Murray said she had calculated 22 play centres that she knew of had paid almost €400,000 combined in premiums last year.

This year, almost €700,000 is being sought from them, a rise of 70pc.

“We need to allow kids to be kids and play in a fun and safe environment. We make our centres as safe as possible and have to adhere to strict health and safety measures to even get insurance,” she said.

“Yes, kids will fall, bang heads and sometimes have a worse injury like a break, but where the business hasn’t been at fault and not negligent, then don’t claim.

“It’s not as simple as the business has insurance so it’s OK, because it really isn’t. Our premiums are being driven up, insurance companies are pulling out of the market and businesses are closing.”

She said she and others in the sector had met Michael D’Arcy, the junior minister with responsibility for insurance reform, a number of times pleading with him and the Government to do more to make changes to stamp out the claims culture.

“His role is to sort out insurance. Right now, there is no insurance for play centres, so it is not being sorted out,” said Ms Murray, who vowed to keep looking for some way to keep her business open to avoid any job losses.