The future of the only nightclub in Burnie in north-west Tasmania is in doubt due to rising insurance costs.
Burnie's Green's Hotel will remain closed for a second weekend in a row after its security company's insurance provider refused to cover the business for public liability for its dance floors and live music.
The hotel's manager Lee Green said it was a "devastating blow" for the business.
"It's very scary. Without security we can't operate. We don't have a business, that's where it's at," he said.
"Times are very tough. Not knowing whether I'll be there next week or the week after. It's hard.
"The insurance companies are more or less double-dipping. You've got public liability for the people coming into the venue and then you've got public liability against the security guards."
The business directly employs about 30 staff on Friday and Saturday nights, and attracts hundreds of people from the north-west region every weekend.
"A lot of them [staff] are depending on that money and we just get them over the line," Mr Green said.
"When you can't give them the hours they need to live it's not a good thing."
Mr Green said he had been attempting to find another company to provide affordable security, but been unable to find one.
"We are going to need some help to get us operating again."
He said he feared an extended closure of the venue would force party-goers into unsafe territory.
"Instead of having people coming out and going to one venue, people start having parties at home and it's not a controlled environment, therefore putting more stress on police," he said.
"It's not good for Burnie."
Nationwide issue
Australian Security Industry Association's CEO Bryan de Caires said other late-night venues around Australia were facing similar insurance problems.
"We've seen insurance premiums rising by 600 to 800 per cent and in some cases, not being offered at all," he said.
"The premiums have been going up steadily over the last 18 months but in the last six months, it has become significantly higher."
Mr de Caires said it was too much of a risk for security companies to provide their service without adequate insurance protections.
"The market is very tight and there are very few providers offering cover and the ones that are offering cover are asking more questions than they used to," he said.
"Some businesses are finding it so expensive that they are unable to recoup the additional cost of the insurance."
He said more security companies were likely to pivot away from late-night venues to other sectors.
"It's when you get into the late night, alcohol, the demographics of younger people, the risk goes up and the insurers get more worried and that's when they put the premium up."
