While personal injury claims have fallen 40%, the cost of insurance is continuing to weigh on small businesses.

A report by the Injuries Resolution Board shows that between 2019 and 2023, the number of public-liability claims linked to accidents to businesses and public spaces fell by 40%.

This is despite a 3% increase in claims in 2023 compared to 2022.

According to the Alliance for Insurance Reform group, the overall price of insurance rates in this current environment is “unconscionable”.

Multiple small business owners joined Lunchtime Live today to weigh in on the situation.

Breifne Gymnastics Club in County Cavan owner Leah O’Brien said that while her insurance cost fell slightly this year, she has seen an overall increase of about 200% since opening her doors seven years ago.

“We are a bit of a liability in terms of insurance, but we personally have had no claims,” she said.

“Yes, we’ve had accidents, but thankfully – touch wood – we've never had someone put in a claim against us.

“People are usually very understanding - and they’re putting their kids in and accepting the risk is there.

“So, we are paying a higher premium, and like that, we can’t afford for it to continue to increase.

“There potentially would come a time where we wouldn’t be fit to pay any more than what we’re already paying.”

Girl working out finances. Image: hris Rout / Alamy. 14 January 2015

Owner of JJ Hough’s Singing Pub in County Offaly Ger Hough said his insurance is five times more expensive than what it was in 2018.

“I’m worried about my local customer and the costs that get passed on to them that could drive them over the edge,” he said.

“Prices go up, consumers can’t afford to go out and businesses close – all you have to do is go down your street, look at all the coffee shops, hairdressers, pubs, all the small businesses that have been closing.

“A recent study by Deloitte, I think it was in one of the papers the other day, reported a record rise in small businesses going bust.”

Mr Hough also said he also finds it difficult to keep up with the cost of Government initiatives like minimum wage and employee pension plans.

Childcare industry

Clever Cloggs Creche in County Cavan owner Paula Donohue said the childcare industry has seen “unprecedented rising costs while stuck in a freeze of prehistoric figures”.

“We have a particularly ‘wonderful’ set of circumstances with insurance in the childcare industry, where we have one provider in the island of Ireland,” she said.

“So, effectively a monopoly exists - there is no challenges to that provider to put some sort of competition in.

“Now, we represent to the Government and have had meetings with high level officials, saying that this situation is not healthy.

“It doesn’t allow competition into the market, and we’re stuck with the one person who can charge whatever they like, whenever they like – unfortunately nothing happens.”

Ms Donohue said that while childcare providers can get their own individual premiums, the lowest rates are offered to those who pay for a membership to another organisation.

Other texters got in touch to say they are confounded by this country’s system of insurance.

Listen back here:

Featured image: Man with many bills or invoices and no money. Alamy 2024