Pressure is mounting on FBD Insurance over its interpretation of its business interruption insurance cover, which it believes does not cover loss of business due to the COVID-19 pandemic. However, a number of FBD’s customers have challenged this interpretation.

Three publicans have taken joint legal proceedings against FBD Insurance and a test case will be heard in the Commercial Court in October to resolve the issue. FBD has over 1,300 pub customers in Ireland, meaning it has significant exposure should the test case ruling go against the insurer.

FBD says it has so far received over 700 claims from businesses under its business interruption insurance cover.