FEARS that a ‘compo culture’ may be about to hit small businesses in Limerick have been expressed after a local retailer was forced to pay-out almost €300,000 in compensation.
As the High Court returns to Limerick next week to deal with more than 400 personal injury cases, shop owners have reported a sharp increase in claims as insurance premiums continue to rise.
The latest data shows that one in three businesses have faced a personal injury claim in last 12 months and they are now lobbying the Government to introduce new measures to radically transform the landscape for dealing with personal injuries cases.
85 per cent of retailers surveyed by RGDATA have seen an average 30 per cent increase in their insurance premiums over the last year, with some reporting increases of up to 150 per cent.
RGDATA Director General Tara Buckley said that shop owners are facing a real crisis and has called for immediate Government intervention.
“The high level of personal injuries claims is presenting a major threat to the viability of retail operations. The recent closure of a shop in the Midwest was attributed to the increasing level of claims and insurance costs – in that instance 40 jobs were lost. As well as high insurance costs, retailers must meet some of the costs of claims themselves and in some cases this can amount to €10,000 per claim.
One local shop faced multiple claims arising from a variety of incidents.
A woman wearing flip flops stubbed her toe on a mat on the way into the shop. The insurance company settled the case without contesting liability and the woman was awarded €32,000.
A customer who slipped in the car park was awarded €80,000; another received €70,000 after slipping on ice-cream in a car park while a third was awarded €30,000 after they slipped on ketchup in the store. One employee received €40,000 after tripping over shoes on the shop floor while another who fell off a ladder, secured €36,000 in awards and costs.
Ms Buckley said that the advent of the Injuries Board some years ago was very welcome but it now seemed that solicitors were advising clients to ignore the Board’s recommendations and take their chances before the Courts.
“We need to look afresh at the Injuries Board to see if its role and function can be increased to dealing with issues of liability and award levels. The current system is badly broken and ordinary hardworking business people are carrying a dysfunctional legal system on their backs. This needs to stop now,” she said.
