Melbourne Nightclub Runs Without Insurance for Two Years
Topic: Insurance
Mon 18 May 2026 at 5:15am
A Melbourne nightclub hosts events like drag trivia.
In short:
A Melbourne nightclub has no public liability insurance.
The Insurance Council of Australia explains why premiums rise.
What's next?
The government is investigating small business insurance.
A nightclub in Melbourne's inner west has a loyal community.
The nightclub is known for being welcoming and safe.
The owner describes the community as a mix of people.
The Pride of our Footscray is popular in Melbourne's queer community.
The owner has a 50 per cent share in the business.
The nightclub was created by a community effort.
The nightclub hosts various events, including drag queens.
A drag queen has worked at the nightclub for four years.
The owner sees the venue as inclusive for the LGBTQIA+ community.
People come from all over to visit the nightclub.
The nightclub has a capacity of 200 patrons.
A drag queen has benefited from the nightclub's broad patron base.
The drag queen is grateful for the stages to perform.
She wants to make people happy and smile.
Insurance woes
Public liability insurance is crucial for businesses.
Without insurance, a claim could lead to bankruptcy.
The nightclub's insurance premium was initially low.
The owner owns 50 per cent of the business.
The insurance price rose significantly in 2020.
In 2022, the price rose to $43,010.
In 2024, the insurance broker found one company willing to offer insurance.
The premium would have cost $157,179, including a loan.
It would have been the end of the business.
Other venues in Melbourne faced similar insurance hikes.
The Old Bar in Fitzroy commented on the situation.
The landlord allowed the nightclub to operate without insurance.
Two years have passed, and it's been extremely stressful.
An insurer had conditions for renewing the building insurance.
The venue hasn't had a claim, but the possibility keeps everyone alert.
The venue takes precautions to prevent mishaps.
The landlord's insurer refused to renew the building's insurance.
The venue manager says staff are on high alert.
The insurer explained why it doesn't insure nightclubs.
The landlord found a new building insurer.
Why did insurance premiums increase?
The Insurance Council of Australia explains the reasons.
Rising claims costs and legal fees are key drivers.
The federal government launched an inquiry into small business insurance.
Hearings began last week.
The nightclub attracts patrons from across Melbourne.
The nightclub detailed its insurance woes to the federal inquiry.
The Australian Live Music Business Council commented on the situation.
The council wants rules for compensation claims strengthened.
A new app helps venues present themselves to insurers.
The FM Track app is designed to mitigate injury risk.
New insurance broker on the scene
Entertainment venues apply for insurance via a broker.
A new company, Luma Insurance Brokers, invited the owner to submit an application.
Luma launched in 2025 and has 120 clients.
The company expects to source a quote for less than $50,000.
Luma broker David Grainger explained the company's approach.
Most brokers charge a commission, but Luma charges a fixed rate.
The owner remembers the cost breakdown of a previous quote.
Safe space in the west
The threat of closure worries staff and patrons.
A venue regular describes the nightclub as an institution.
The nightclub is important for the queer community.
The owner has heard the venue provides a safe space for trans people.
Some patrons might not go anywhere else if the venue closes.
A drag queen relies on the survival of venues like the nightclub.
The drag queen has performed at the nightclub for four years.
Without places like the nightclub, she would lose her income.
Mon 18 May 2026 at 5:15am
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