Insurance won’t cover COVID-19 fallout for pubs

KERRY publicans and the wider hospitality sector are up in arms over a decision by insurance companies not to cover ‘Business Interruption’ claims following the fallout from COVID-19 closures.

The Kerry Vintners’ Federation slammed the decision for failing to step up to the mark and honour the policy in what are unprecedented circumstances.

Chairman of the Kerry Vintners, Christy Walsh, who runs Christy’s Bar in Listowel, said by not paying out it will make a bad situation even worse as there is no indication when business will resume again.

“We’ve been banging drums for a long time on the price we’re paying for insurance and now in our time of need we’re looking at every avenue to see where we can get money to keep us going,” Christy said.

The insurance companies say the policy only covers in cases where an outbreak of a virus occurs on the premises, forcing that business to close. The Vintners Federation of Ireland and the Licensed Vintners Association are asking the Government to ensure that pub closures be officially mandated into law.

Christy added that insurance companies are saying this is a different situation as it’s a world pandemic and if they had to pay publicans, then they would have to pay every sector ‘Business Interruption’ insurance.

“I would say about 90 percent of publicans in Kerry would be self-employed and we just need something to be able to grasp onto at this stage. If we don’t get money through our insurance, than at least the Government must be seen to be supporting the self-employed.”

The Vintners propose that the Government would compensate publicans according to different tax bands, or that insurance companies would extend a pub’s policy for the amount of time they are forced to stay closed.

“For example, if I had to stay closed for eight weeks, then when it comes to renewing my policy the insurance company should give eight weeks free gratis. What’s happening now is going to close pubs. For those that do survive, we’ll be lucky to get a third of our trade back over the first couple of weeks reopening,” he said.

Christy explained that it’s a very difficult time for publicans given the sudden change to their way of life.

“I’m taking phone calls from publicans every day on a range of concerns. I’m worried for the mental health of publicans the longer this goes on, and how they are going to cope. These are testing times,” he said.

Christy Walsh