Rising Liability Costs Put Pressure on Australia's Leisure Sector
Rising Liability Costs Put Pressure on Australia's Leisure Sector
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The Australian Amusement Leisure & Recreation Association (AALARA) has raised concerns over the escalating costs of public liability insurance, which are placing significant pressure on amusement and recreation operators across the country.
This warning follows the Insurance Council of Australia's (ICA) recent call for reforms to civil liability laws.
AALARA reports that insurance affordability and accessibility have become critical risks to business continuity within the leisure and attractions sector. Some operators are struggling to secure coverage, while others have been compelled to reduce offerings, delay investments, or scale back operations to manage their exposure. The association emphasises that risk management alone cannot address the reluctance of insurers to cover high-risk sectors.
The ICA's white paper underscores the need for legislative reforms to modernise civil liability laws, which have remained largely unchanged for nearly 25 years. These outdated laws are contributing to the rising costs of public liability insurance, particularly affecting industries like live music venues, festival operators, caravan parks, and amusement venues.
In summary, AALARA's concerns highlight the urgent need for coordinated efforts between industry stakeholders and government bodies to address the challenges posed by rising liability costs. Without such interventions, the viability of Australia's leisure sector remains at risk.
Published:Thursday, 20th Nov 2025 Source: Paige Estritori
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