Pubs could have looked for virus cover elsewhere, FBD tells court
FBD does not provide pandemic cover and publicans suing the company could have sought such insurance elsewhere if they “actually wanted to”, the Commercial Court was told yesterday.
On day nine of the hearing, Declan McGrath, senior counsel for FBD, said with the exception of Noel Anderson, managing director of the Lemon & Duke bar, none of the pub owners explicitly sought cover for the coronavirus pandemic.
Mr McGrath said experts called on behalf of FBD outlined how pandemic insurance is available on the London market and that many Irish brokers would have knowledge of this.
“If the insured was concerned about obtaining cover for disease, they should have got this cover and could have got it if they actually wanted,” he said.
A person who is insured with FBD “doesn’t have to come to FBD” and is entitled to go to a broker and get quotations from any insurer in the market, Mr McGrath told the court.
Four pub groups are suing FBD over its refusal to indemnify them for losses incurred by the coronavirus pandemic.
Sean’s Bar in Athlone, The Leopardstown Inn, Sinnott’s bar and Lemon & Duke in Dublin, are taking legal action against the insurer as they believe a clause in their policies entitles them to recover compensation.
The clause states their business is covered if forced to close in the event of “outbreaks of a contagious or infectious disease on the premises or within 25 miles of same”.
In the case of Lemon & Duke, a side letter was furnished on March 2 to Mr Anderson confirming this particular clause would cover his business for coronavirus in the event of an imposed closure.
The court previously heard how Mr Anderson switched insurers on the back of this representation, which was later withdrawn by FBD.
Mr McGrath described Mr Anderson in court today as “the canary in the coal mine as he saw the issue before everyone else”.
However, it was FBD’s position that the other publicans, Stephen Cooney of the Leopardstown Inn, Philip Byrne of Sean’s Bar and Chris Kelly of Sinnott’s bar, did not specifically seek out pandemic cover.
He alluded to the evidence of Mr Cooney, who said he saw the disease clause and thought of Sars in Hong Kong and how it devastated the restaurant industry, and foot and mouth in 2001.
The parties are this week making their closing submissions and the case is expected to conclude on Friday.