Melbourne Nightclub Operates Without Public Liability Insurance for Two Years

A nightclub in Melbourne's inner west has operated without public liability insurance for two years after most insurers refused to provide coverage. Pride of our Footscray opened in 2018 above a Vietnamese supermarket in Footscray. Owner Mat O'Keefe said the venue draws a mixed crowd of about 25 percent gay, 25 percent lesbian, 25 percent bi, and 25 percent straight patrons.

It hosts poetry readings, bands, queer film nights, art classes, speed dating, comedy, trivia, and drag performances.

The venue's annual premium started at $1,000.

M. in 2020, the cost rose to $6,270. In 2022 the premium reached $43,010, which the business paid. In 2024 a broker approached 19 insurers; 18 declined coverage and one quoted $142,890. Mr O'Keefe said paying the quoted premium plus loan interest would have totaled $157,179 and ended the business.

The landlord allowed the venue to continue operating without the policy. Venue manager Monique Anderson said staff remain concerned about potential claims.

The Insurance Council of Australia said rising claims costs and higher legal fees have driven premium increases for higher-risk venues. The Australian Live Music Business Council told a federal inquiry that several large claims during the COVID period reduced insurer profitability and prompted some underwriters to exit the market.

The federal government launched an inquiry into small business insurance last year. Hearings began last week and Pride of our Footscray submitted details of its situation. It called for a government insurance scheme.

In recent weeks Luma Insurance Brokers contacted the venue. The company, launched in 2025, has 120 clients including music venues. Broker David Grainger said the firm charges a fixed hourly rate rather than a commission percentage. Luma has not yet provided a quote but expects to source coverage for less than $50,000.