Nobody asked for insurance cover against a pandemic, argues FBD
INSURER FBD does not and has never provided cover for pandemics and no one in Ireland has ever asked for it, the Commercial Court has heard.
Four publicans have sued FBD over its refusal to indemnify them for losses suffered due to the Covid-19 pandemic in actions with implications for over 1,000 bars and restaurants. The insurer’s lawyers said that insurance policies that cover such events are highly specialised.
Declan McGrath SC for FBD, which is opposing the publicans’ claims, said part of its case is that the general insurance market in Ireland does not insure against events like pandemics.
Only specialist brokers, which he said are based overseas, on a bespoke basis offer an insurance policy that cover the fall-out from something like Covid-19.
Evidence would also be given to the court that nobody has ever asked FBD for a policy that covers against a pandemic like Covid-19, counsel added.
In his submissions to the court, counsel said that in support of their claims, the publicans’ lawyers said the claims are similar to those considered by the English High Court earlier this year.
That court ruled in favour of the UK’s Financial Conduct Authority, which brought the case on behalf of the policyholders, on the majority of the key issues, counsel said.
In particular, they ruled that payouts were triggered under certain “non-damage” clauses that covered disease and denial of access to business premises.
Counsel said that the court was being asked by the publicans’ lawyers to “rubber stamp” the UK decision. On what was the second day of the action, Mr McGrath said that a considerable amount of reliance had been put on this case.
Counsel said that decision should not be followed by our Commercial Court. The UK’s decision is under appeal and the finding was different in several ways to the claims before the Commercial court, he said.
The actions before the court have been taken by Dublin bars Aberken, trading as Sinnotts Bar; Hyper Trust Ltd, trading as The Leopardstown Inn and Inn on Hibernian Way Ltd trading as Lemon & Duke.
The fourth action is by Leinster Overview Concepts Ltd, which trades as Sean’s Bar, in Athlone, Co Westmeath.
The publicans claim the policies taken out with FBD have a clause that states the pub owners will be indemnified if their premises are closed by order of local or government authority if there are “Outbreaks of contagious or infectious diseases on the premises or within 25 miles of same.”