The Vibrancy Reforms are a cross-government initiative developed in consultation with key government agencies, industry, councils and stakeholders to improve the night-time economy through both legislative and policy reforms.
The legislative reforms were made through the 24-Hour Economy Commissioner Act 2023 and the 24-Hour Economy Legislation Amendment (Vibrancy Reforms) Act 2023.
In October 2024, the NSW Parliament passed the 24-Hour Economy Legislation Amendment (Vibrancy Reforms) Act 2024, and these newest changes will take effect in the coming months as outlined on this page.
As venues evolve to embrace vibrancy reforms—including live music, dancing, and extended trading hours—it is critical to manage associated risks through proper disclosure and controls.
Below are key exposures that must be addressed and declared to your insurer:
a. Live Music Exposure
Action: Declare all live music activities to your Public Liability insurer via your Insurance Broker/Advisor.
Key Exposures:
- Crowd Control Risk: Larger crowds can form, especially during live music sets, requiring enhanced crowd management and potentially more security personnel. Electrical & Equipment Hazards: Temporary audio setups can introduce trip hazards, overloading circuits, or other electrical safety concerns.
- Performer Liability: If performers are independent contractors, confirm whether they hold their own Public Liability cover to avoid uninsured liabilities.
b. Dance Floor Designation
Action: Declare to your Insurer if a dancefloor has been created or designated, even if only temporary.
Key Exposure:
- Slip, Trip & Fall Risk: Dance floors have an inherently higher slip/fall potential, especially if drinks are spilled.
- Glass Management: Increased likelihood of broken glass injuries if beverages are allowed near or on the dance floor.
- Surveillance Requirements: May necessitate increased CCTV monitoring and routine inspections.
- Security Requirements: Larger or more active crowds could require additional security to manage behavior and prevent overcrowding.
- Injury Liability: Movement-intensive activities increase the risk of personal injuries, which could lead to liability claims.
c. Extended Trading Hours
Action: Notify insurers if trading hours will be extended beyond previously declared times.
Key Exposures:
- Insurer Coverage Limitations: Some insurers restrict coverage beyond certain hours (e.g., 1:00 AM or 3:00 AM); operating past these limits without declaration could void coverage. Fatigue & Staff Safety: Extended hours may increase fatigue-related incidents among staff or patrons.
- Late-Night Incidents: Higher risk of alcohol-related injuries, violence, and claims in the early morning hours.
d. Capacity & Patron Volume Changes (Additional Exposure)
Action: Declare any increase in maximum occupancy or expected crowd size due to live acts or events.
Key Exposures:
- Egress & Emergency Evacuation Risk: Higher patron numbers may exceed safe evacuation capacity, increasing liability in emergencies. Overcrowding: Can exacerbate the risk of fights, falls, or crushing incidents, particularly near the stage or dance floor.
- Staff-to-Patron Ratio: May necessitate hiring additional staff or security to manage the crowd safely.
e. Liquor Licensing Compliance (Additional Exposure)
Action: Review and declare any changes in licensing conditions associated with entertainment or extended trading.
Key Exposures:
- License Breaches: Operating live entertainment or dancing without the correct endorsement can breach licensing laws.
- RSA (Responsible Service of Alcohol) Challenges: Longer hours and higher patron volume increase the challenge of enforcing responsible alcohol service.
- Fines & Reputational Damage: Non-compliance may result in penalties and reputational damage, impacting business viability and insurance.
f. Temporary Structures or Equipment (Additional Exposure)
Action: Declare temporary installations such as stages, lighting rigs, or speaker mounts.
Key Exposures:
- Structural Failure Risk: Temporary equipment poses a risk of collapse, especially when improperly secured. Injury to Public/Staff: Increased likelihood of injury from falling objects or unsafe structures.
- Permit Requirements: May trigger council permit obligations or building safety compliance checks.
Final Recommendations
- Conduct a full risk assessment before implementing any vibrancy-related changes.
- Maintain incident logs and monitoring protocols for all new features (e.g., live music nights, dance events).
- Ensure all staff are trained and briefed on safety procedures related to the new offerings.
- Regularly review your insurance policy in conjunction with your broker or advisor to ensure all changes are captured and appropriately covered.
Get expert insights and the customised solutions you need—speak with our team today.
