Pub operator claims he got direct assurance of Covid cover from FBD

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The managing director of the Dublin city centre bar/restaurant ‘The Lemon and Duke’ has told the High Court he was given direct assurances from FBD that its policy cover business disruption losses caused by Covid19.

Noel Anderson, who is also a vice chairperson of the Licenced Vintners Association, told the court he specifically switched insurers to FBD in early March of this year after he became very concerned about the virus.

Despite being initially being “thrilled” and “relieved” to get insurance which he thought would cover Covid 19 he said he was left “outraged” after FBD informed him last April that the policy did not cover business losses caused by the pandemic.

Mr Anderson was giving evidence before Mr Justice Denis McDonald the second week of tests cases brought by four pubs arising out of FBD’s refusal to indemnify them for the disruption to their businesses due to Covid19.

In reply to his counsel Michael Cush SC Mr Anderson said he first became concerned about the impact of Covid 19 in mid-February.

While others believed he was overreacting, was “stone mad”, and that there was “a million to one chance the pubs would be closed”.

He said that people win the lotto at big odds” and make enquiries to see if the premises’ previous insurance policy would cover losses in the event of business being closed due to Covid 19.

When he discovered the previous policy did not cover Covid 19 said a fellow publican told him FBD’s policy appeared to provide coverage for Covid 19 resulting in him making contact with the insurer.

Mr Anderson, whose partners in the bar/restaurant include Irish rugby players Sean O’Brien, brothers Dave and Rob Kearney, and Jamie Heaslip, said he spoke to FBD representatives in early March and was told “that FBD were covering coronavirus” for pubs.

He said he was very clear what he wanted cover wages, losses and rent in the result of a lockdown. and FBD were under “no misapprehension” as to what he wanted.

After receiving assurances that the policy covered business disruption caused by Covid 19 he moved the businesses’ insurance to FBD, which he said was a relief after “suffering sleepless nights”.

The policy in relation to the Lemon and Duke, which is currently trading as a restaurant only, covered losses up to Eu3.2m, he said.

The government he said made a decision to close the pubs on March 15th.

St Patrick’s Day meeting

A meeting took place between representatives of the LVA with senior FBD staff, including its CEO Fiona Muldoon on St Patrick’s Day.

In April he said he was formally informed by FBD that it would not provide cover. He was astonished by this and felt that the insurers attitude was “disingenuous, and completely dishonourable.”

Under cross examination from Remy Farrell SC for FBD Mr Anderson said that getting assurances that the insurance policy covered any closure arising out of Covid 19 was always to fore of his mind when he discussed becoming a customer of FBD.

Mr Anderson said he had asked “very direct questions” and sought “very direct answers” from FBD’s representatives over Covid 19 coverage when he was considering taking out insurance with it.

“I just want what is rightfully owed” he added.

Also giving evidence was Mr Christopher Kelly whose group of companies owns 11 pubs employing 300 people, “90% of whom he said had to be laid off” due to the impact of the pandemic.

In reply to his counsel James Doherty SC Mr Kelly said his businesses had over many years paid FBD €3 million for insurance, and had only made claims of approximately €300,000.

He said he had a good relationship with them, and had declined to switch insurers because the other policies did not cover for things including the outbreak of disease.

He said that as far as he was concerned the plain English used and the words contained in the policy meant his businesses were covered for the losses caused by the impact of Covid19.

As all the criteria had been met, he said FBD should have paid out but did not resulting in legal proceedings. “We should not have to be here today” he said.

He also spoke of his concerns for his employees within the group, adding that he had a grown employee with young children come to him “in tears” over fears they could not pay their mortgage.

The actions 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.

They claim that under their policies of insurance taken out with FBD they are entitled to have their consequential losses covered by what they claim is an insurable risk.

They also claim that the insurer is in breach of contract.

The publicans claim the insurance policies taken out with FBD have a clause that states the pub owners will be indemnified if their premises are closed by order of the local or Government Authority if there are “Outbreaks of contagious or infectious diseases on the premises or within 25 miles of same.”

FBD disputes that claim and says the closures did not occur as a result of an outbreak of disease at the premises or areas where the pubs are located.

The hearing continues.

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