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Mike Denver

Dont Close Your Eyes

Legal Costs In Claims Against Businesses Skyrocket Once Cases Go To Court

Wednesday, 14 July 2021 09:57

That's the finding of a new study from the Central Bank.

Business liability insurance premiums rose by 24 per cent between 2013 and 2019.

A new Central Bank study says this came after premiums dropped by 16 per cent between 2009 and 2013.

Overall, profits on business premiums averaged about 5 per cent over the last decade.

Central Bank Director of Economics Mark Cassidy says Ireland’s business insurance market is extremely volatile:

Legal costs in claims against businesses skyrocket once cases go to court.

A new Central Bank study says legal costs in claims settled through the state’s Personal Injuries Assessment Board were just over €1,000.

But if cases went to court, average legal costs surged to €20,000, even though compensation in both routes was roughly the same.

Tim O'Hanrahan from the Central Bank says tackling this could help businesses:

Business liability premiums rose by 24 percent between 2013 and 2019.

Junior Finance Minister, Laois-Offaly Fianna Fáil TD Seán Fleming says most businesses have 'manageable' premiums:

Peter Boland from the Alliance for Insurance Reform says the drop in case settlements still need to be passed onto consumers:


 

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