On St. Patrick's Day, Wisdom from Irish Pubs for All of Us!

Irish pubs are known to be the source of local gossip, lively music and pints to slake one’s thirst. But now, add legal guidance to the various offerings of these cherished venues!

When Covid 19 forced pubs in Ireland to close a year ago, the owners—-like so many of us——hoped the so-called lockdown would be temporary. When the pandemic continued, some publicans faced the prospect of not being able to sustain their small businesses over the long-term. That is when a pub owner trade association took the ultimate drastic action as a responsible business: checking the fine print!

Many Irish pubs have insurance policies that include coverage for so-called “business interruption” losses. The FBD policies at issue included a provision that covered losses that arose:

“[A]s a result of the business being affected by imposed closure of the premises by order of the local or government authority following outbreaks of contagious or infectious diseases on the premises or within 25 miles.”

But how does this type of coverage fit into a pandemic and geographic travel restrictions posed by the Irish government?

When pub owners filed claims under this provision, FBD denied coverage. FBD argued that the business losses were caused by matters within and beyond the 25-mile radius. Likewise, the insurance company asserted that the Covid pandemic was not a single event causing a loss, nor was it reasonably contemplated by the policy.

The Commercial Division of the Irish High Court rejected FBD’s reasons for denying coverage in a February 2121 opinion for as long as the effects of the pandemic continued or their policies ended. FBD states it will not appeal this decision and will start to honor claims.

How does this Irish decision impart business acumen to the rest of us? Well, it is a reminder that it is essential to look at the fine print of insurance policies, rather than to just take the insurance company’s response to a claim. It is easy to give up when going against a corporation. But don’t accept defeat without considering options.

In addition, this legal outcome reminds us there is strength in numbers. The four Irish publican plaintiffs in the action joined together to challenge the insurance company; their success benefits over 1000 other Irish pub policy holders. Even more broadly, Irish pubs employ local people on a full- and part-time basis—-bartenders, waiters, cooks, musicians, cleaners. Pubs serve as a community meeting place whilst also serving beer.

Happy St. Patrick’s Day! May we all be able to visit our own versions of the local Irish pub—-delis, coffee houses, diners, bars, community centers—- in the not-too-distant future!

“The “luck of the Irish” pub is a fine example to all of us!”