October 20, 2020
Business News

Insurance crisis: Fears grow for future of Waterford restaurants and cafes

Fears are growing that local restaurants and cafes will be hit by the insurance crisis that has crippled the childcare and hospitality sectors.

The Government has offered a one-off payment averaging between €1,500 and €26,000 after it emerged up to 1,300 childcare providers across the country were hit by soaring insurance premiums after underwriter Ironshore withdrew from the market.

Despite this, many crèches say they still face closure in the New Year. And now fears are mounting that a ‘domino effect’ will drag other sectors into the insurance crisis.

There are serious concerns restaurants and cafés could face soaring premiums after business owners were notified that three leading insurers may not be offering renewals for 2020. The voluntary sports and community sector is feared to be the next area facing a major crisis.

Waterford councillor and Fine Gael General Election candidate John Cummins welcomed the Government’s decision to allocate financial supports to childcare providers.

However, he admitted tackling rising insurance costs remains a major challenge.

Cllr Cummins said: “I have received correspondence from many providers in recent weeks who were affected by the withdrawal of an insurance provider from the Irish market. I hope that this additional payment can help these providers to meet the cost of their insurance premiums for the coming year and ensure their doors remain open providing an invaluable service to working families.

“This is a position which we cannot tolerate into the future. The cost of insurance is not just crippling those in the early years sector but is affecting each and every one of us, be it motor, home or business insurance.”

 

 

 

 

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