A Nightclub’s Fight for Survival
Pride of our Footscray, a nightclub located above a Vietnamese supermarket in Melbourne's inner west, has built a fiercely loyal community since opening in 2018. Known for being welcoming to LGBTQIA+ patrons, the venue hosts drag shows, poetry, film nights, and other events. Owner Mat O'Keefe holds a 50% share, with 199 others owning smaller stakes.
Insurance Premium Increases
The nightclub's public liability insurance premium was initially $1,000 per year. After its liquor license was extended to 3am in 2020, the premium rose to $6,270. In 2022, it increased to $43,010, which O'Keefe paid.
In 2024, the club's broker approached 19 insurers; 18 declined to offer insurance, and one quoted $142,890. O'Keefe stated the total cost with a loan would have been $157,179, which would have forced the business to close.
"The total cost with a loan would have been $157,179, which would have forced the business to close."
O'Keefe's landlord allowed the club to operate without public liability insurance for two years, a period O'Keefe described as "extremely stressful." The venue has never had a claim made against it.
In 2023, the landlord's insurer, WFI Insurance, refused to renew the building's insurance policy because it does not insure buildings where nightclubs operate due to perceived heightened risks. The landlord secured a new building insurer, with the nightclub paying the majority of the premium.
Factors Behind Premium Increases
The Insurance Council of Australia attributed rising premiums to increasing claims costs and legal fees. The federal government launched an inquiry into small business insurance in 2024; hearings began in 2025.
The Australian Live Music Business Council stated that a small number of large claims during the COVID-19 pandemic wiped out the premium pool for the entertainment industry, leading many insurers to exit the market.
Recent Developments
In early 2025, Luma Insurance Brokers—a new company launched in 2025 with about 120 clients (half music venues)—invited O'Keefe to apply. Luma broker David Grainger said the company charges a fixed hourly rate rather than the typical 10–30% commission. Luma expected to provide a quote for less than $50,000.
O'Keefe noted that the $142,890 quote from his previous broker included a commission of about 10%.
Community Impact
Patrons and staff described the venue as important for the queer community in Melbourne's western suburbs. O'Keefe stated that the club has provided a safe first night out for some transgender individuals. Manager Monique Anderson said closing could affect patrons' willingness to go out.
"The club's survival is crucial for my income and performance spaces." — Drag queen HollyPop, who has performed at the venue for four years
Drag queen HollyPop, who has performed at the venue for four years, said the club's survival is crucial for her income and performance spaces.