Picture: Don MacMonagle
KILLARNEY hoteliers have backed calls on the legal profession to adopt a more reasonable approach to personal injury cases which is putting their businesses at risk.
Hoteliers said the legal profession must shoulder some of the responsibility for the excessive cost of public liability insurance which is threatening the viability of many businesses.
Several Kerry hotel owners and managers are attending the annual Irish Hotels Federation conference in Galway where they heard that the legal costs associated with administering claims are so high they are having a hugely detrimental impact on the proper administration of justice.
IHF President, Michael Lennon, maintained that the legal profession could do more to reduce the number of fraudulent and exaggerated claims coming before the courts which, he said, were also contributing to the high cost of insurance.
“The pace of insurance reform continues to be painfully slow. Excessive premiums are continuing to hurt many businesses with a significant number of hotels this year paying over €1,000 per room. For an industry that is so price-sensitive, this level of cost is completely unsustainable,” he stated.
Mr Lennon said hoteliers have no issue whatsoever with genuine claims where guests are rightly and properly compensated but the scales of justice are tipped firmly in favour of the plaintiff and this cannot continue.
“The exorbitant fees being charged by lawyers are deterring insurance companies from pursuing cases through the legal system. It’s not unheard of for a plaintiff’s legal costs to be triple the amount awarded to them so, not surprisingly, insurers often prefer to settle a claim before it goes to court rather than risk running up a sizeable legal bill,” the IHF chief added.
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