Apr 9, 2020
Our work to date has focused on and will continue to focus on highlighting the negative impact of persistently high premiums and calling for real reforms that will quickly reduce liability and motor insurance premiums to affordable levels and keep them that way.
However, we cannot ignore the impact of the COVID-19 crisis and in particular, the apparent blanket refusal of insurers to cover any business interruption caused by the crisis. So the following is an update of what we are doing in this area as well as an update on our ongoing insurance reform work.
CORONAVIRUS/COVID19
Individual member organisations whose members are being directly impacted by the insurance industry stance on business interruption are taking direct action on the issue up to and including legal action. The Alliance is acting in a support role to add momentum and a broad perspective on the issue as well as seeking reductions in policy costs to reflect the reduction in commercial activity caused by the crisis.
Having issued an initial press release on Friday last we have:
- Written to Paschal Donohoe asking him to “urgently meet representative bodies of the affected businesses and the main insurers to quickly turn a blanket ban into a sensible resolution of the problem.” He has so far responded by calling on insurers “not to reject businesses’ claims for loss of earnings if they were advised by the Government to shut up shop to contain the spread of Covid-19, amid evidence the industry is relying on fine print and technicalities to avoid payouts” according to media reports.
- Written to the Governor of the Central Bank asking him that the Bank “in its role as the consumer protection agency in the insurance market, makes a public statement on its approach to the issue and urgently meets representative bodies of the affected businesses and the main insurers to quickly turn a blanket ban into a sensible resolution of the problem.” We are awaiting a reply.
- Written to the Financial Services Ombudsman asking him to “urgently meet representative bodies of the affected businesses and the main .. to quickly determine opportunities to fast-track disputes in this area and turn a blanket refusal into a sensible resolution of the problem.” We are awaiting a reply.
- Asked Insurance Ireland to coordinate a positive response from the insurers with regard to reductions in policy costs as the crisis reduces their exposure to risk.
We have also been in regular contact with the Department of Finance and have supplied them with sample policies which we believe cover business interruption due to the COVID-19 crisis; and this morning the DoF are telling us that one insurer has conceded that some policyholders will be able to make a claim, while they are waiting for replies from others.
Media-wise we were on Galway Bay FM and the Last Word on Today FM yesterday about the issue and will be on Taking Care of Business on Midlands 103 tonight. We have also been giving updates to the newspapers.
https://www.todayfm.com/shows/last-word-matt-cooper-234816
(At 00:16:50hrs, Monday 23rd March)
https://galwaybayfm.ie/shows/galway-talks-with-keith-finnegan/
(first clip on the page as of 10am today)
https://www.independent.ie/business/small-business/latest-news/businesses-say-state-must-intervene-on-insurance-39063140.html
Robert Troy, the FF TD has been carrying out a survey regarding businesses affected by the business interruption issue. As of last night he had 417 responses. Highlights are as follows:
57% of respondents said they had decided to close their business on public health grounds. 43% had not closed.
60% of respondents have already been told by their insurer that they cannot make a claim for business interruption. Most of the remainder are awaiting a decision or have not enquired.
The bulk of rejections are on the grounds that:
- Businesses asked to close, not told to
- Closure by government not covered
- Insurer does not cover pandemics (seems to be mainly FBD)
- Policy only covers damage on the premises
- Covid19 has to have caused closure by occurring on the premises
- Only cover material damage
- Variations on “Covid19 not on our list”
- “Not on list of notifiable diseases” (it is)
- Variations on “Just not covered” including “Not covered under any insurance policy in the world.”
- Act of God and Force Majeure also cited
- Business Interruption not on policy
The issue is clearly urgent given the responses to the question:
Will your business survive an extended closure period (1month -4 months) without insurance damages?
Very Unlikely: 77
Unlikely: 146
Subtotal 54%
Neither Likely nor Unlikely: 88 (21%)
Likely: 80
Very Likely: 19
Subtotal 24%
I was struck by how many responses say they ‘were told by the broker’ or ‘told by the insurer’ that they didn’t qualify for damages under business interruption. There’s a real need for an ‘honest broker’ to decide whether this blanket ‘NO’ is valid on a policy-by-policy basis.
Robert Troy was on Morning Ireland yesterday about this survey and the responses necessary. We are in regular contact with him about this.
INSURANCE REFORM
On our insurance reform priorities, we are actively engaged with the Programme for Government negotiators to ensure our priorities are reflected in the next PFG:
- Reduce general damages on minor, fully recovered injuries.
The Judicial Council’s Personal Injuries Guidelines Committee will meet for the first time in April (subject to the COVID-19 crisis) and is then obliged by law to submit its first draft personal injury guidelines to the Board of the Council by the end of October 2020.
What happens next depends on the attitude of the board which has up to 12 months to mull over the draft guidelines before adopting them, but may choose to fast-track them as they have the whole PIGC process to date. We continue to endorse this judicial approach to reducing general damages but have reserved the right to switch to the legislative approach if the PIGC does not deliver substantial reductions to general damages for minor injuries.
With regard to the legislative approach, the Alliance made a submission to the Law Reform Commission Issues Paper on the issues surrounding a legislative fix to this problem, as did several other member organisations including ISME who are the lead organisation on the legislative approach. A final report on this approach will be published at the end of 2020 earliest.
- Review and re-balance the “common duty of care” to require the occupier to take a duty of care that is reasonable, practical and proportionate
LEGISLATION: While Fianna Fail was quite vague in their GE2020 manifesto, the party assures us they are committed to amending the Occupiers Liability Act 1995 to help in rebalancing the Duty of Care.
Both Fine Gael and Sinn Fein also expressed a desire to address the duty of care issue in their manifestos.
JUDICIARY: We have written to the Secretary of the Judicial Council requesting a meeting with the Judicial Studies Committee to discuss their approach to duty of care and the implications for policyholders.
INSURERS: We plan to meet the main insurers regarding their settlement strategies, particularly with regard to interpretation of the duty of care, as well as a list of other issues. This will now happen once the coronavirus issue has settled down.
DISCLAIMERS: Michael D’Arcy who is now a FG candidate for the Seanad, has committed to asking the incoming Government to “Consider changes to the Occupiers Liability Act and the Civil Liability Act, to strengthen waivers and notices to increase protections for consumers, businesses, sporting clubs and community groups.” We will hold him to this commitment or ask others to pursue it if he does not get into the Seanad.
COMMUNICATION: We have started to highlight duty of care issues in recent court decisions on our social media platforms and will ramp this up as we move forward with the project.
- Fully-funded Garda response to insurance fraud
No concrete developments yet again – no funding has yet been allocated to the Garda response to insurance fraud. The Gardaí are reporting that they do not have funds to even purchase computers or pay analysts to assist their insurance fraud response. It is up to the new Government to fund this.
- Insist on insurers committing to a schedule of forecast reductions for reforms
We must have some clarity from insurers on the scale of reductions we can expect from the various reforms being pushed through. This is all the more pressing since the December publication of motor insurance statistics by the Central Bank which show that for motor insurance at least, insurers have been doing quite well in recent years. The Department of Finance continues to work on this with Insurance Ireland. We await a result.
- Cabinet Committee: Finally we have asked the parties negotiating to form the incoming government to establish a Cabinet committee chaired by An Taoiseach to coordinate action and ensure the necessary reforms are put in place urgently; with An Taoiseach reporting to the Dáil on a monthly basis on progress.
CONSUMER INSURANCE CONTRACTS ACT 2019
This Act was signed into law just after Christmas but has still not been commenced by the Minister for Justice.
It is a wide-ranging Bill based on the 2015 Law Reform Commission report; sponsored by Pearse Doherty (SF) and supported by Michael McGrath of FF and Min. Michael D’Arcy. When commenced, it will adjust the balance of power between insurers and policyholders. It will apply to ‘natural persons’ as well as ’incorporated bodies’, ‘sole traders, partnerships, trust clubs or charities with an annual turnover in its previous financial year of €3 million or less’.
The Alliance has engaged extensively with Sinn Fein on the development of elements of this legislation. Equally, the Department of Finance has actively taken our views into account.
The legislation is not expected to bring down the cost of insurance in the short term but will make purchasing and using insurance products easier going forward.
WHAT YOU CAN DO IN THE MEANTIME?
- Contact your local FF, FG, Green and Independent TDs and Senators. Ask them to push for the five actions listed above (reduce general damages, rebalance the duty of care, Garda response, get commitments from insurers and cabinet committee) to be added tothe Programme for government and dealt with as a matter of urgency. This is all the more urgent as we plan our recovery fro mthe COVID-19 pandemic.
- 2. Tell us your stories! Contact the Alliance if you can help at peter@insurancereform.ie
- Continue to Like, Share, Comment and Retweet our posts on Twitter and Facebook
Above information issued on 24th March 2020.
Apr 6, 2020
Future Ticketing are a cloud based ticketing software provider and one of the key benefits at times like these, is that we can continue to work remotely and support our clients needs. We are currently working with a number of our existing and new clients to help them set up online ticket sales, membership, season ticket sales and more for future events
The current climate has forced us all to review how we have operated previously but it is also allowing us time to consider what we can do differently going forward to keep revenue flowing. Here are just some examples of how our Future Ticketing software can help your business commercialise your websites:
- Online ticket sales including season tickets
- Online memberships and registrations
- Deposits against memberships
- Fundraiser options (tailored to clients requirements, incl. recurring payment options)
- Event set-up – allowing you to forward sell and generate additional revenue for a variety of events i.e. Awards nights, Guest speaker nights, Training courses (e.g. safeguarding etc.)
- Gift Vouchers
- Flexi tickets
- Extra fields to collect additional data on your customers.
Future Ticketing offers clients an easy to use, digital system that can be set up in 48 hours if required. Future Ticketing works hard to help clients to open up and expand on valuable revenue streams in the current climate.
Please don’t hesitate to give me (Ronan Burns, 0868144741) a call if you would like to know more about how we can get through this together.
Please stay safe, wash your hands and keep your distance
Apr 6, 2020
Clarification to the usage of cash reserves
“In relation to the usage of cash reserves in the context of eligibility under the Wages Subsidy Scheme, the Revenue Commissioners – as the ultimate arbiters of the scheme – have clarified the position in the attached guidance document. Specific attention is drawn to the text at the top of page 3 where it confirms that “An employer that has been hit by a significant decline in business but has strong cash reserves that are not required to fund debt, will still qualify for the Scheme but the Government would expect the employer to continue to pay a significant proportion of the employees’ wages”. Subsequent to the issue of that guidance document, the Chairman of the Revenue Commissioners, Niall Cody, has publicly indicated that even if a company has cash reserves for debt or future expansions they can still qualify for the scheme. The Minister for Finance has also commented to the effect that those employers who have cash in reserve, and who have been hit by a decline in business, can also still qualify for the scheme”.
20200327 Revenue guidance-on-employer-eligibility-and-supporting-proofs
Apr 6, 2020
Extracts and Information sourced from: ‘COVID-19: FAQs for NGOs’ published by PILA, a project of FLAC.
Employment Law:
COVID-19 presents a significant number of both standard and novel employment law issues for NGO employers. Organisations have a duty of care toward their employees and must ensure their health and safety as far as reasonably practicable. What is ‘reasonably practicable’ at any particular time will depend on the worker, the job, the environment and the risks. It can change over time. Your organisation will need to ensure it is taking appropriate steps to manage all staff in a manner consistent with that duty of care in the face of this pandemic. It will be vital to monitor up-to-date information provided from the World Health Organisation and the HSE, to act on any guidance provided, as well as comply with the usual employment law legislation, regulations and case law.
Useful Resources:
– The law firm A&L Goodbody has put together a list of Top 10 Employer COVID-19 FAQs https://www.algoodbody.com/insights-publications/covid-19-top-10-employer-faqs
– The Wheel has a useful resource Guidance for NGO employers https://www.wheel.ie/employers
– The Department of Employment Affairs and Social Protection has produced Guidance for Employers https://www.gov.ie/en/publication/612b90-covid-19-information-for-employers/
Corporate Governance
The board of your organisation is responsible for, among other things, anticipating and managing the risks which you may face. The recent spread of COVID-19 is likely to create risks for your NGO, which your board should consider and address.
Useful Resources:
– Arthur Cox has issued specific guidance on AGMs and COVID-19 https://www.arthurcox.com/COVID-19/corporate-and-ma/covid-19-making-contingency-plans-for-agms-2/
– The Carmichael Centre is contactable by email for advice on governance related issues at info@carmichaelireland.ie.
Funding agreements, contracts and SLAs
Organisations should consider the potential staffing, operational and financial impacts of COVID-19 on the organisation and how these may have consequences for delivery of existing contract commitments. All funders, both State and philanthropic will be acutely aware that this crisis will place many organisations in great difficulty, and many will be willing to discuss and renegotiate the terms of existing contracts in light of the evolving situation. It is advisable to speak with funders at an early opportunity to explore possible options. Every contract is different. Some contracts will contain in-built provisions which allow the parties to vary or change the terms where some unexpected event (like a pandemic or “force majeure”) happens. Others contain “termination” or “hardship” clauses. The particular contract should be examined carefully and evaluated on a case-by-case basis. However, specialist legal advice should always be sought before suspending performance of contractual obligations, terminating the contract or seeking to vary the terms of the contract.
Useful Resources:
– Arthur Cox has published a guide to COVID-19 Practical Considerations: Force Majeure clauses in contracts https://www.arthurcox.com/COVID-19/corporate-and-ma/covid-19-practical-considerations-force-majeure-clauses-in-contracts/
– Eversheds Sutherland has provided information on what organisations need to know about force majeure and frustration https://www.eversheds-sutherland.com/global/en/what/publications/shownews.page?News=en/ireland/coronavirus-what-do-businesses-need-to-know-about-force-majeure-and-frustration-ireland
Data Protection
The Office of the Data Protection Commissioner has noted that many of the steps which voluntary organisations may be taking to contain the spread and mitigate the effects of COVID-19 will involve the processing of personal data (such as name, address, workplace, travel details) of individuals, including in many cases sensitive, ‘special category’ personal data (such as
data relating to health). The increased numbers of employees who are now working remotely will also raise data protection issues. The Data Protection Commissioner has said that ‘measures taken in response to COVID-19 involving the use of personal data, including health data, should be necessary and proportionate. Decisions in this regard should be informed by the guidance and/or directions of public health authorities, or other relevant authorities’. For data subject requests, the timelines are set in law, however the Data Protection Commissioner suggests taking a number of steps, including
communicating delays with the individual concerned and availing of the two month extension to the period.
Useful Resources:
– The Data Protection Commissioner has issued two guidance notes: COVID-19 and Data Protection https://dataprotection.ie/en/news-media/blogs/data-protection-and-covid-19 and Protecting Personal Data When Working Remotely https://dataprotection.ie/en/protecting-personal-data-when-working-remotely-0
– McCann Fitzgerald have issued some general guidance on Coronavirus and Data Protection – Four Points for Employers https://www.mccannfitzgerald.com/knowledge/data-privacy-and-cyber-risk/coronavirus-and-data-protection-four-points-for-employers
Insurance
It is advisable to try to carefully identify the impact of COVID-19 on your organisation, especially what loss has been and may be suffered by the organisation as a result. Some typical examples may be cancelled events or fundraisers, cancelled travel plans, or COVID-related harm to employees or volunteers. It is always useful to record a chronology of key details and
events, and retain any relevant documentation. Insurers will expect you to take reasonable steps to reduce (mitigate) any
loss, so think about how you can minimise the damage to the organisation and keep this under review. This can be a complicated and lengthy process so do not be rushed by insurers to finalise your claim. You will also need to consider whether the organisation is at risk from claims by others against the organisation. The next step is to review your insurance policies to understand whether insurance might cover those impacts. Your organisation should then confirm the scope of insurance cover and the policy conditions with your broker.
Useful Resources:
– Arthur Cox has provided Practical Considerations on Insurance Coverage https://www.arthurcox.com/COVID-19/insurance-and-reinsurance/covid-19-practical-considerations-insurance-coverage/
Further details and contact details for FLAC can be found in the full published document located here https://www.pila.ie/assets/files/pdf/pila_covid-19_faqs_for_ngos_26_march_2020.pdf?issuusl=ignore
Apr 2, 2020
Many of our self-employed clients, including company directors, are now running their business from home. Because you are at home all day, you will most likely notice an increase in your utility and other bills.
Certain expenses will be allowed as a business cost and these are outlined below. Generally, if home costs/bills are fixed there will not be an increase in your bill and hence no extra business cost element.
If there are other family/household members also at home during regular working hours the fact you work from home may only have a marginal effect on increasing the household electricity, heating and other bills above what they would otherwise be. In the event that this is a case, then we suggest that you do not claim any element of the bills as a business cost.
So what expenses will be allowed as a business cost?
Mobile phone & Broadband Costs
Tax relief can be claimed on mobile phone and internet costs that are necessary for your business. Strictly speaking you should obtain an itemised phone bill and the business calls should be highlighted so that you can accurately calculate the cost of those business calls that qualify as a business expense. If you are claiming an estimated percentage of the cost of phone bills, we recommend that you review those costs regularly to make sure that you are not over-estimating them. In the event of a query from Revenue you will need to provide itemised bills showing how you arrived at the business element.
The cost of broadband is a fixed monthly charge, so it is arguable that there is no business cost at all if you already had broadband in your home for private purposes. The fact that you are now working at home, will not increase the monthly charge. If, however, you regularly work from home, and you had to get broadband for business purposes, or you need a high-speed broadband then those costs would generally qualify as a business cost.
Light and heat
To the extent that your light and heat bills have increased because you are working from home, then the amount of the increase may be allowed as a business cost (but please see note above re other family members being at home also during working hours),
Office Furniture
If you need to fit out an office, the cost of office furniture would be an allowable expense and would qualify for capital allowances (so the cost would be spread over a number of years). Office furniture would include desk, chair, storage and filing cabinets.
Electronic Equipment
Tax relief may be claimed on electronic equipment exclusively required to run your business. Examples include computer hardware and software, mobile phones etc.
You will need a valid VAT invoice, issued to the company, in order to recover VAT on a business expense.
OSK are available to support you throughout the current crisis – please email Imelda Prendergast or call 014394200.
Take care and stay safe from all the team at OSK.
Check out more insights and updates at https://www.osk.ie/blog/
