Public Liability Insurance Procurement (Urgent)

Decision to prioritise completion of public liability insurance procurement. Currently a critical gap exposing Pride and shareholders to uninsured legal and financial risk. Must be obtained immediately before kitchen opening and licence reclassification.

Scope

Coverage type: Third-party injury, property damage, and legal liability

Current status: NOT IN PLACE. CRITICAL GAP.

Urgency: CRITICAL — should not delay further

Estimated cost: AUD $2,000–$8,000 p.a. depending on capacity and risk profile

Rationale

Public venues face significant exposure:

• Patrons could be injured on premises (trip, fall, assault by another patron, etc.)
• Third parties could suffer damage (property, vehicle, etc.)
• Breach of duty claims possible if venue found negligent

Without public liability coverage, Pride and its shareholders face:

• Financial risk: Uninsured legal costs; potential damages liability if incident occurs
• Operational risk: Inability to operate if venue damaged or patron injured and liability dispute arises
• Licence risk: Regulators may consider public liability insurance standard industry practice; venue may struggle to maintain licence without coverage

Timing Strategy

Phase 1 (Immediate): Complete procurement within 7 days

• Contact multiple providers for quotes (note: “already working with a few different providers” per March 2026 notes)
• Obtain initial quotes covering standard venue risk profile
• Select provider and activate policy before kitchen opening and licence reclassification

Phase 2 (Kitchen opening): Coordinate with licence reclassification

• Once kitchen approved and operational (approved 27 Mar 2026), prepare licence reclassification application
• Public liability insurance policy will likely be required document for reclassification
• After reclassification from “nightclub” to “theatre café”, insurance premiums may reduce due to lower risk classification
• Opportunity: If initial policy obtained before reclassification, may be able to negotiate rate reduction once reclassification complete

Financial Context

Revenue down ~50% from FY23. Survival threshold is AUD $25,000–$30,000/week (revised upward Apr 2026). Insurance must be treated as essential (non-negotiable) compliance cost rather than discretionary spend.

Estimated annual cost: $2,000–$8,000 (roughly $40–$150/week) As percentage of survival threshold: 0.2–0.6% of weekly minimum revenue Comparison: Similar to current advertising spend (~$100/week); less than 1% of alcohol cost

Once obtained, budget for annual renewal (~March 2027).

Related Policies (Active)

WorkCover Insurance

• Status: ✓ In place
• Type: Workers’ compensation (government-mandated)
• Coverage: Employees and volunteers

Security Services Liability

• Status: ✓ In place
• Provider: VCPG Security (contracted externally; licence compliance requirement)

Public Liability

• Status: ✗ NOT IN PLACE (this decision)

Action Items

1. Complete quotes from multiple providers (target: within 3 days)

   • Confirm capacity (standing room, stage area, etc.)
   • Confirm risk profile (alcohol service, late-night trading, live entertainment)
   • Confirm any licence requirements

2. Review quotes and select provider (target: within 5 days)

   • Compare premium, coverage limits, excess, and exclusions
   • Ensure coverage includes all identified risks

3. Activate policy (target: before kitchen opening; 27 Mar 2026 or immediately after)

   • Confirm policy commencement date
   • Obtain policy documentation and certificate of currency
   • Ensure certificate available for licence reclassification application

4. Document and monitor (ongoing)

   • File policy number, renewal date, and contact details in central location
   • Set renewal reminder 30 days before expiry
   • Review coverage annually to ensure it remains adequate

Success Criteria

1. Policy obtained and activated within 7 days of this decision
2. Certificate of currency available for licence reclassification application
3. Policy covers all identified risks (patron injury, property damage, legal liability)
4. Annual cost fits within operational budget (~$2,000–$8,000 p.a.)
5. Renewal process documented and monitored

Related Pages

• Insurance Tracker — summary of all active and pending insurance policies
• Insurance Risk Assessment — comprehensive risk analysis and coverage gaps
• Kitchen Opening Decision — related project requiring insurance for licence reclassification
• Licence Reclassification — security cost reduction opportunity after kitchen opening
• Compliance Obligations — full list of regulatory requirements