Hoteliers in Cavan are calling on the Government to take urgent action to address the spiralling cost of insurance, which is posing a serious challenge for the local hospitality industry. According to research by the IHF (Irish Hotels Federation), 62% of hotels have seen hikes in insurance costs over the last 12 months. The average increase in premiums was 28% year on year. This is in addition to substantial increases in recent years. Some 90% of hotels say they are concerned about the impact of insurance costs on their business. Martin Daly, Chair of the Mourne, Boyne and Lakes Branch of the Irish Hotels Federation (IHF) stated that costs are continuing to soar as a result of excessive levels of awards for personal injury claims.
Commenting on the Judicial Council Bill, which is expected to come into law shortly, Mr Daly said: “While we welcome this legislation, it is imperative that it results in a meaningful review of levels of damages without delay. The time for inaction is over. Awards for soft tissue injuries must be brought down significantly in line with international norms.” He claims exorbitant insurance costs are curtailing the ability of hotels to re-invest in their businesses with knock-on effects for the tourism industry, and local community.
The IHF is also calling for action in relation to the levels of fraudulent or exaggerated claims. The organisation is calling for what they term “a zero tolerance approac” to act as an effective deterrent against exaggerated and false claims.