With community COVID-19 restrictions now well behind us and patrons once again enjoying social nights out, licensed hospitality venues are busier than ever. Alongside renewed nightlife comes the ongoing challenge of managing intoxicated or disorderly behaviour and critically, the potential liability arising from security personnel interactions with patrons.

It is important to keep the following in mind when assessing and managing liability exposures arising from incidents on licensed premises.

Operators of licensed premises owe a common law duty of care to take reasonable steps to safeguard patrons from reasonably foreseeable harm, including harm arising from other patrons. A patron’s state of intoxication does not negate or reduce the duty owed; the duty and standard of care remain unchanged by intoxication. This principle reflects section 49 of the Civil Liability Act 2002 (NSW) (CLA).

The Liquor Act 2007 (NSW) empowers licensees and their authorised personnel to refuse admission to, or remove, intoxicated, violent, quarrelsome or disorderly persons and permits the use of a “reasonable degree of force” in so doing. However, what amounts to “reasonable force” is a frequent subject of dispute in civil claims.

Recent NSW judicial decisions reinforce that venues cannot absolve liability simply by outsourcing security services:

• In Bondi Beach Foods v Chadwick [2023] NSWCA 265, the NSW Court of Appeal upheld that a licensed venue and its contracted security provider both owed a duty of care to patrons and may be jointly liable for breaches.

• The judgment confirmed that insufficient qualified security staffing, particularly a failure to provide appropriately licensed security guards, constituted a breach of duty.

• The decision also confirmed that contributory negligence can significantly affect damages. In this case, the plaintiff’s contributory negligence was assessed at 50%.

This reflects a trend where courts scrutinise whether venues have adequately assessed and mitigated foreseeable risks, including through appropriate security resourcing and supervision. 

To manage exposures effectively, licensed venues should ensure:

• Compliance with legislation and licensing – Security personnel must hold and maintain appropriate licences under NSW law for the activities they undertake especially where the use of force is possible.

• Documented security and risk policies – All venues should maintain written and regularly reviewed:

  • Security operations procedures outlining how patrons are monitored, refused entry and removed.

  • Incident registers (aligned with Liquor & Gaming NSW requirements), particularly for recording incidents involving violence or removal under section 77.

• Adequate staffing and ratios – The authorities emphasise that venues must allocate sufficient licensed security personnel based on patron volumes, historical risk profiles and peak events and a failure to do so may be deemed a breach of duty.

• CCTV and evidence capture – CCTV must be functional and positioned to clearly record interactions with patrons, especially refusals and removals. Poor evidentiary records can undermine a venue’s ability to defend claims.

• Responsible service of alcohol – Licensing laws and NSW Government guidance require active measures to prevent, monitor and respond to intoxication, with significant penalties for non-compliance.

For those assessing claims involving injuries on or near licensed venues:

• Evaluate whether security staffing levels and licenses met industry and legal standards at the time of incident.

• Assess incident registers and CCTV for evidence of policy compliance and use of reasonable force.

• Consider contributory negligence or causation issues under the CLA where applicable.

• Scrutinise any gaps between documented procedures and actual conduct in the lead-up to the incident.

The legal landscape continues to hold licensed venues accountable not only for the actions of their own staff but also for the competence and conduct of contracted security personnel.

Recent judicial decisions confirm that outsourcing security does not inherently discharge a venue’s duty of care and may expose insurers to shared liability.

Insurers should take an active role in reviewing risk controls, contractual arrangements and incident documentation to ensure informed assessment and equitable outcomes in claims involving licensed venues and security personnel.

For advice on managing risk exposures arising from licensed venues and security personnel interactions or for assistance with claims involving intoxication, use‑of‑force or occupiers’ liability issues, contact our Insurance team.