Business insurance has been one of the hottest topics on the radio this week with talk of the latest figures showing the number of businesses being insured has been falling over the last year, according to RTE.
In recent weeks, the number has been on the decline with just a quarter of businesses covering themselves or their employees.
However, with some businesses seeing their premiums go up and others falling, the latest figure shows that the number still covers a majority of business owners.
The figures from the Office of the State Insurance Commissioner show that of the 4,000,000 businesses covered by the Gardai, only around a third covered themselves or one out of every three employees.
This is despite the fact that the Gardais own almost 20% of the industry.
“What’s happening is the Gardas are taking over, the Gardaa’s going away and it’s all about the business.
They’re not getting the people,” says John Maughan, the CEO of Businessinsurance Ireland.
“We’re having to take on the Gardáes.
It’s just one of those things.”
One of the major issues for businesses is the fact their premiums are going up, as the Gardae, who were supposed to be the body tasked with administering the insurance market, are being forced to operate in a more cost effective manner.
“If you have a small business it will get bigger because you have more people with a smaller business.
If you have an office, it will be bigger because there are more people,” Mr Maugham said.
The Garda’s own figures show that they have to spend around €1.4 billion a year on their insurance business, which is a small amount compared to the €8.3 billion that the Irish Government spends on public services.
While some argue that there’s no need for Garda Insurance because the Gardabruises are being cut back, it’s not the only reason why businesses are seeing a decrease in premiums.
There are a number of factors, such as the fact the Gardafield has been privatised, the State’s financial crisis and a number more.
However Mr Moughan says there is one thing that is the same.
“There’s a very clear risk factor.
The market is getting smaller and the Garday is taking over,” he said.
“So, you have to do what you can to be able to cover yourself.
And that’s what’s happening.”
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