Melbourne Music Venues Seek Government Aid Amid Insurance Crisis

Music venues in Melbourne are in a bind due to soaring insurance premiums, leading to restrictions on activities like dancing with drinks and even venue closures. They're now calling on government bodies for support to keep their establishments open and the local music scene vibrant.

Insurance Hikes Impacting Local Venues

Recent dramatic increases in insurance costs have placed a heavy burden on live music venues. Some have experienced premium jumps from manageable annual fees to prohibitive rates. For instance, The Old Bar in Fitzroy saw its insurance soar from $10,000 to $60,000 per year, forcing it to introduce a 'no dancing with drinks' rule to stay afloat.

Local Government Motion and State Intervention

The Yarra City Council is considering a motion to help find or advocate for more affordable insurance solutions for night-time venues in areas like Collingwood and Fitzroy. Venues are also urging the state government to offer insurance coverage through its insurer at prices they can afford, to prevent the cultural and economic loss that could result from venue closures.

Community and Economical Importance

Venues are integral to the local economy, providing employment for security personnel, bar staff, and musicians. The potential for further insurance restrictions poses a threat to the cultural fabric of the area, which is known for its vibrant late-night dance culture.

The Issue of Rising Premiums

Nick Murnane from The Evelyn Hotel has seen firsthand the negative effects of the insurance premium spikes on local music hubs. One venue in Ballarat had to shut down temporarily due to a jump from $7,000 to $75,000 in insurance costs. The increased premiums contribute to growing concerns among venue owners, alongside other financial pressures such as the cost of living, which affects patronage and spending.

Calls for State Government Action

As the crisis escalates, Music Victoria's CEO has called for state government intervention through the Victorian Management Insurance Authority, reminiscent of the support provided during COVID-19 insurance market failures.

Challenges and Responses

Although the live music industry sees government-backed insurance as a potential solution, there are concerns about setting a precedent that might lead other industries to seek similar support. The Victorian Minister for Creative Industries acknowledged the significance of live music venues but pointed to federal regulation of the insurance industry while highlighting state monetary support for local music events.

music, insurance, government