Ms Linda Murray:

Historically, I do not know why we cannot source insurance in Ireland. I have been in the leisure sector for 11 years. It has never even been brought up. In the past, one went to one's broker and was told that leisure centres do not get insurance in Ireland, so I have always sourced my insurance across the water. The insurance company in the UK told me that Ireland is seen as a loss-making nation when it comes to insurance and that the cost of claims is far higher than is the case in the UK. It stated that it has no interest in insuring play centres in Ireland, particularly those with a claim or two against them. The premiums of centres without claims against them are increasing by 100% or 200% to cope with any potential claims on the business. I have noticed what seems to be a cycle, with insurance companies from the UK coming in every three or four years and then leaving. We have never had a range of insurance companies from which to choose. The companies see us as loss-making. However, the figures for our group show that we are not loss-making. I have been told that the insurance companies are afraid of what could happen, given the type of awards that are made.

When I began looking into this matter a few months ago, I thought the biggest reason for the difficulty sourcing insurance was claims and that our insurance premiums probably matched or came near to the level of claims. When I discovered that there is a significant disparity between the two, I asked why we cannot get insurance if there is so much money to be made on us as an industry. I was told it is because of the fear of what can happen as a result of the type of awards that are made. It is the fear of claims for broken bones, such as a broken arm or finger. It is not catastrophic injuries, it is the fear of claims for broken bones. Most of the injuries suffered on our premises are soft tissue injuries such as bruises or a split lip. Those are the injuries for which €15,000 or €20,000 is being awarded; it is not, in many cases, injuries such as a broken arm. The insurance companies are afraid that eight companies within the group scheme being sued for broken arms could result in €200,000 or €250,000 of payouts.