Climbing centres across Ireland could face closure after the sole underwriter providing cover for walls pulled out of the Irish market last month due to the rising cost of awards. Businesses are struggling to find alternative cover from underwriters and are already losing money through restricting use of facilities to over 18s.
© Awesome Walls Dublin
An article in The Irish Times explains that the activity's principle insurer, Axa XL, opted against renewing its contract as payouts increase, which is a reflection of a general trend across the Irish leisure industry in recent years.
Damien O Sullivan, Climbing Officer at Mountaineering Ireland, told UKC:
'The payouts for injuries at walls are in line with those from other activities, but payouts in Ireland for a similar injury in the UK are between four and six times higher, based on the Book of Quantum for injuries in Ireland. Legal fees to defend claims are also high.
'This is not a 'current crisis' issue, it's been an active issue for around four years,' he added.
The number of underwriters willing to cover climbing wall businesses in Ireland has dropped from around five or six to Axa XL alone in recent years. Since Axa XL's withdrawal, insurance companies are refusing to offer walls quotations for the cover they require. With no public liability policy in place, some centres have been forced to stop children from using their facilities - the bread and butter of most climbing wall businesses. If no solution can be found, all commercial climbing facilities will face closure.
According to the Irish Times report, a band of six commercial centres across Ireland are working together in an effort to establish a group scheme and are looking ahead to a more stable sector as and when payouts decrease in cost. The Judicial Council Bill, which was passed through the Houses of the Oireachtas this summer, will enable judges to recalibrate damages and compensation awards and potentially encourage UK underwriters to re-enter the market.
Comments
How strange. Are there a lot of payouts for Irish climbing walls? Didn't Axa the sole provider of insurance have a monopoly and could have simply raised prices to a commercially viable level?
Something is off.
It is not just climbing walls, it is across the whole of the leisure sector in Ireland. Our clients are owners and operators of ropes courses and zip wire parks. They have all struggled to get cover for 2019, even quotes. When they have they have seen premiums rise by over 100%.
One client, an independent hotel with leisure facilities and an adventure based ropes course saw their premiums for PL insurance go from 15000 euros in 2017, to over 25000 euros in 2018. Then in 2019 they couldn't even get a quote until eventually through contacts and connections they got an offer at over 50000 euros. They had no claims in the period.
It is good to read that some changes appear to have been started at a judicial level and that the industry is coming together to support each other and come up with an industry led solution. Here in the UK we have a great industry led Mutual that will cover and support all outdoor providers and also freelancers. Not just with their insurance needs but also with events, training and advice as well. We use them and recommend you consider them as a business or a freelancer.
They are https://www.activitiesindustrymutual.co.uk/
I was at a free to attend event just last week.
Unfortunately AIM cannot offer cover in Ireland. We (Gravity in Dublin) have asked.
What sort of awards are being made by Irish courts to cause the problem? I presume that everyone signs the usual waivers, are the courts basically ignoring waivers and holding walls liable for any accident?
A waiver form has no real bearing in Court in the UK. You can not waive away negligence for personal injury or death. Same applies in Ireland. The difference is the JC guidelines which govern the awards in the UK. The awards are much higher in Ireland. If someone actually dies in the UK due to negligence the awards are minimal.