NEWCASTLE live music operators are growing nervous about their next insurance policy after venues across the country have reported premium hikes of up to 300 per cent.
AAP reports that at least 30 venues around Australia are facing problems with their insurance renewals due to the skyrocketing cost.
Some live music businesses have even had their insurance withdrawn by providers.
Cambridge Hotel licensee Dru Russell said the Newcastle West venue's next insurance policy was not due until later this year, but it was a major concern for the business.
"Ours has got a little bit left to run on it, but I'm nervous for when it comes up," Mr Russell said.
Insurance premiums for live music venues, such as pubs and nightclubs, have spiralled in recent years due to concerns it is a high-risk industry.
Lizotte's owner Brian Lizotte rolled over his policy just prior to the recent rise in premiums, but he said it was a growing problem.
"There's a few other venues who are screaming about it already," Mr Lizotte said. "My insurance has skyrocketed through the roof already.
"We already have a problem with that to begin with as a small business."
The rise in premiums comes after a horrific two years of COVID-19 lockdowns, which have decimated the live music industry.
Even with venues free to operate at full capacity, COVID is still leading to regular gig cancellations.
Ticket sales are also down across the board as many punters are increasingly cautious and wait until the last minute to purchase tickets to avoid cancellations.
The Australian Live Music Business Council is working with businesses to find overseas insurers, when Australian providers are unable to offer suitable policies.
"We're using the data we've collected from those venues about their claims history to essentially argue the case that it's not a high-risk environment," council general manager Phil Brown told AAP.
"The messaging around the nature of risk in live music wasn't helped at all throughout COVID, but it also goes to this really tired assumption that a live music venue is full of sex, drugs, and rock and roll."
Mr Brown said small to medium venues were the "incubators" of musical talent in Australia.
The owners of Melbourne's Leadbeater Hotel were forced into a weeks-long hunt to find a new provider in May after their insurance company's overseas-based underwriter rejected their renewal.
On Thursday the pub revealed it was closing immediately due to their insurance company refusing to renew their policy. Then on Friday the Leadbeater announced it would remain open for this weekend's shows after they agreed to a $1000 a week premium.
The venue's previous policy, taking into account reduced turnover because of COVID, cost just over $5000 for the full 12 months to May.
"(Other companies) will insure us if we agree to just be a pub and not a live music venue, which is a no-go for us," Leadbeater Hotel co-owner Joe Downey said.
"And then the other option is to just become a performance venue, and you're only able to operate during the times of ticketed shows."
