State must give insurance cover for bosses who fear claims over virus – Howlin
FORMER public spending minister Brendan Howlin has called for State insurance cover against Covid-19-related claims, to help get Ireland back to work and save jobs.
Mr Howlin said the State Claims Agency must be called in because insurance companies are refusing to provide cover for coronavirus-related claims. He said far too many businesses will not be able to reopen because they might be sued by a customer or employee who catches the disease.
“Jobs are at risk – action is needed now,” the former Labour leader said.
Mr Howlin said workplaces and businesses are being told they cannot get insurance cover for Covid-19-related claims and insurance renewals will not cover it. “It will be impossible for businesses, and some public bodies to open without that insurance,” the Wexford TD said.
“I am being told this directly by childcare providers, hotels and restaurants.
“They cannot take the risk of being liable for their employees or their customers becoming victims of Covid-19 if they are not insured against it.”
He urged the State to step in with some sort of indemnity or insurability.
“A person can’t sue if they get the flu when visiting the local supermarket. We need to address that issue or businesses will not reopen when this phase passes,” said the former public spending minister.
Mr Howlin raised this issue in the Dáil with Business Minister Heather Humphreys two weeks ago.
“We need urgent action now. I asked her then to look at the issue of insurance liability as a matter of urgency.
“I am really worried that this issue will hold up thousands of jobs coming back,” he told the Irish Independent. He said the Government providing a general indemnity for Covid-19, via the State Claims Agency, would remove the immediate risk from insurance renewal.
There would still be the usual reasonable care provision meaning the State could pursue reckless employers.
The UK’s independent Office for Budget Responsibility has backed a similar plan there saying there is a “very good argument that the state should essentially be the insurer here”.
“The long-awaited childcare scheme for health workers fell apart within a day when insurers told providers they would not be insured for any claims related to Covid-19,” said Mr Howlin.
“Shops, hotels, pubs and restaurants are worried about the same thing. It is a major worry.
“We also don’t know if schools can reopen in September, and one of the main reasons will be insurance cover.
“The Government now needs to step in and use the State Claims Agency to indemnify against the risk of people getting Covid-19.
“The costs of any future claims can be recouped through a levy on insurance profits, but what’s most important now is to get Ireland reopened once it is safe to do so.
“Workers and customers also have to feel safe so there must be a very robust inspection regime from the Health and Safety Agency, and those found breaking the rules must be held to account.
“That’s why under our proposal, the Government must ensure that businesses that flout health and safety guidelines will pay the cost, not the State.
“The sooner we get the country back up and running in a safe way, the quicker we can get people back to work, respecting social-distancing rules,” he said.