Businesses have been highlighting the difficulty of obtaining public liability insurance due to rising costs.
Representatives appeared before the Oireachtas Finance Committee to discuss the issue this morning.
Small and medium businesses told the committee that spiralling costs are forcing some to close their doors.
The CEO of the Irish SME Association (ISME), Neil McDonnell, took aim at the liability payouts that go through the courts.
He said not everything that happens on a business premises means the owner is liable.
He suggested: "At the moment, if you own a premises or operate a premises, and you go before a court - most especially where children are concerned - you've lost before you go in there, irrespective of the merits of your case.
"We have a bonkers concept of what constitutes negligence and duty of care."
'Restricting activity'
In their submission to the committee, ISME said rising insurance costs are causing some businesses to fail.
However, the group also claims that insurance pressures are "hollowing out Irish society" by "restricting the conduct of sport, play and charitable activity".
They also warn about the "significant" impact of fraudulent claims, with the group calling for an overhaul of both the insurance system and the legal system.
Linda Murray, who owns a playcentre in Navan in Co Meath, said her insurance premium has increased by over 1000% in the last six years.
She told the committee about experiences of other similar businesses when trying to get a quote.
She observed: "You actually don't get told until about 24-48 hours before your premium is due what your premium is going to be."
Ms Murray said that leads to difficulty in 'shopping around' for different rates, but added: "There really isn't much shopping around to do".
Committee Chair John McGuinness was also critical of the industry.
He argued: "These are hard-nosed business people in the insurance world, and they're taking advantage of the complete shambles that this is."
Deputy McGuinness encouraged the lobby groups to continue to engage with the Government on the issue.
