The Licensed Vintners’ Association (LVA) has announced that the average insurance premiums for Dublin pubs rose to €29,811.62 in their most recent renewals – an increase of €1,714.53 on their premiums for the previous year.
The LVA surveyed its members last week, following recent suggestions that insurance premiums for pubs were starting to reduce.
Most Recent Renewal
Of the 92 pubs that provided their insurance details, more than seven out of ten (72%) had experienced an increase in their most recent renewal.
Half of all the respondents (50%) to the survey had renewed their insurance since the beginning of July 2023, while almost nine out of ten (88%) had not had an insurance claim in the previous 12 months.
‘Lack Of Competition’
“Sums of this magnitude are very damaging to competitiveness, are adding to the inflationary pressures facing pubs, and are ultimately making hospitality more expensive for consumers,” said Donall O’Keeffe, chief executive of the LVA.
“The lack of competition between insurers also remains a serious problem.”
Late-Night Venues
The cost of insurance premiums for late-night venues also drew attention, with the average premium for late-night bars and nightclubs coming to €92,117.10.
The survey also showed the difficulty that pubs have in securing multiple quotes from insurance providers, with 45% of publicans saying that they were unable to source more than one quote.
‘Eye-Watering’
“For those who offer late-night hospitality, the costs are eye-watering,” said O’Keeffe.
“The average [is] coming in at over €92,000, while several premises had premium costs that reached six figures.”
City Centre Venues
The survey also showed that city centre venues (which represented approximately one third of the total respondents) had considerably more expensive premiums than their suburban counterparts.
For those in the city, the average premium came to €41,572.97, while the suburban premiums came to €24,970.23 – a difference of €16,602.74.
‘Acid Test’
“We have written to Minister [of State at the Department of Finance] Jennifer Carroll MacNeill on this matter, and we are encouraging the government to bring further pressure to bear on the insurance providers,” said O’Keeffe.
“The acid test of insurance reform is to deliver lower-cost premia for business and looking at the survey data. That outcome still seems some way off.”
