Darragh Davern: Rising insurance premiums are causing huge economic hurt to hospitality sector

Premiums rose 24pc in just two years

More than 70 food service businesses closed in February, with a loss of 1,500 jobs. Photo: Getty

Dr Donagh Davern

Premiums on insurance are contributing to the enormous cost pressures which small businesses face. According to Deloitte, 46 hospitality businesses became insolvent in the first three months of 2024, an increase of 142pc on the same period in 2023.

And there is no doubt that insurance premiums, along with the 13.5pc Vat rate plus increased labour costs contributed to the fact that over 70 food service businesses closed in February of this year alone – with a loss of 1.500 jobs.